India Set To be 3rd Largest in Global Aviation Market

The growth trajectory is quite high for the Indian aviation market and India is on the launching pad to be the worlds third largest market of the global aviation market, as mentioned by the Shri M. Venkaiah Naidu during his speech in the inaugural event of 2nd Aero Expo India 2017. He further went on to say that the Aviation market does not only provides seamless connectivity but also leverages the economy of the country. Aviation Industry provide the backboneto the  transpotaion system in the global arena of transportation.It indeed is the most vital sector for linking businesses, bringing people together and promoting tourism worldwide, he added. IATA also expects the air passengers to double from 3.8 billion air passengers in 2016 to 7.2 billion by 2035. With increasing disposable incomes and a burgeoning middle class, air travel will witness further spurt in the years ahead.

India is anticipated to be world's 3rd largest market of the aviation marlet based on following aviation statistical data provided by various agencies.

• In last one decade, growth in the domestic passenger traffic recorded a CAGR of 11.46% for the tenure of Fiscal 2006 and 2017.
• Growth in domestic passenger traffic increased by 0.75%, recoding 22% in Fiscal 2017, as compared to growth rate of 21.24% in Fiscal 2016. This is as per the As Directorate General of Civil Aviation.
• During February 2017, domestic airlines carried over 8.23 million passengers, showing a growth of more than 23 per cent compared to the same period last year.
• Growth in the international passenger traffic stood at CAGR of 8.33% for Fiscal 2006 and 2017. While international passenger traffic increased by 7.72% in Fiscal 2016.

According to International Air Transport Association (IATA), one per cent of the global GDP is expected to be spent on air transport in 2017, totaling $ 776 billion. IATA’s semi-annual report says that governments gain substantially from $ 124 billion of tax revenues this year and from over 69 million supply chain jobs. India will soon emerge as an aviation hub not only in terms of increased air connectivity but also in terms of Maintenance, Repair and Overhaul (MRO) facilities and setting up of ancillary units.

India’s economic growth and rising disposable income of the middle class is expected to create significant demand for passenger air travel. The increase in supply of aviation infrastructure to meet this demand will create new revenue streams in the sector. Key amongst these will be:Airport development opportunities

• Scheduled and charter air transport services and airlines
• Ground Handling Service providers
• Air Freight providers and handlers
• Terminal management operators – food & beverage, duty free, retail and advertising
• Management, Repair and Operations organisations
• Aviation Training and manpower development companies
• Construction and equipment suppliers to the industry