India’s civil aviation sector is seeing sustained robust demand, having seen an almost V-shaped recovery from an all-time low during the pandemic, Union Civil Aviation Minister Jyotiraditya Scindia said Monday. Speaking at the three-day CAPA India Aviation Summit, the BJP leader said the domestic aviation sector is seeing new highs in almost all parameters, particularly passenger traffic, with the latest record being around 4.56 lakh passengers per day which was "not a blip". Scindia said that despite the high season now over, India is seeing a daily passenger traffic of 4.2-4.4 lakh, suggesting that demand is robust and the next high season starting in October could break previous records. India's aviation sector is now at an inflection point between infancy and just having entered the growth phase, the Union minister said, adding that various factors like high economic growth, growing urbanisation, rising disposable incomes and growing aspirations of a young population are supporting the sector's growth. India is currently ranked as the third-largest aviation market globally. Over the past six years, India's domestic passenger traffic has grown at a compound annual growth rate (CAGR) of around 14.5 per cent, while international passenger traffic has increased by a CAGR of around 6.5 per cent. Scindia said the growth potential is even higher as the sector's penetration is currently at just 4-5 per cent of India's population base. According to CAPA India projections, the country’s domestic passenger traffic is likely to rise to 16 crore in the 2023-24 fiscal year from an estimated 13.75 crore for the current fiscal. By 2029-30, India's domestic passenger traffic is likely to touch 35 crore. Scindia said the growth seen in passenger demand is being supported by rapid expansion in infrastructure, including airport capacity and fleet. "Four years ago, we had a fleet of 400 planes. Now it is upwards of 700," the minister said, adding that India's passenger aircraft fleet is likely to be around 2,000 planes in five to seven years. He said his ministry and the Centre are making concerted efforts to support the sector through this phase of growth by bringing in policy reforms and friendly measures.
