ROLE OF AVIATION INDUSTRY IN

ACHIEVING 5 TRILLION INDIAN

ECONOMY

Presented by,
KRISHNAPRIYA PRIYESH
19206028
 AVIATION SECTOR IN INDIA

Sector structure/Market size

• The Indian aviation industry is one of the fastest growing aviation
industries in the world. The government's open sky policy has led to
many overseas players entering the market and the industry has
been growing both in terms of players and number of aircrafts.
Today, private airlines account for around 75 per cent share of the
domestic aviation market.
• The civil aviation industry in India has emerged as one of the fastest
growing industries in the country during the last three years. India
is currently considered the third largest domestic civil aviation
market in the world. India has become the third largest domestic
aviation market in the world and is expected to overtake UK to
become the third largest air passenger* market by 2024
 Growth Rate

24% annual growth

 How aviation industry is effecting
india's economy?

10 years back there were just 2 airlines. Both state owned .

In the last 10years the economy has opened up. India has
experienced growth rate of 8% per year.
• The main factors which effect the Indian Economy are:-
1. Increased no. of domestic airlines
2. Low cost airlines
3. India's improving economy
• the other factors are:-
1. Increased in no. of business travellers to
different countries
2.Incresed no. of incoming tourist and business enterprises
 Known Factors Influencing
Growth Rate
• Increased Inward and outward tourism
• Increased competition has driven down prices
and margins
• Additional purchasing power due to rapidly rising
real incomes amongst the middle class
• Increased business trade due to the rapidly
growing economy and free trade agreements
with neighbouring countries
• Favourable Government policies and tax
reforms
Upgrading Airport Infrastructure

By 2020, Indian airports are estimated to

handle:
• 100 million passengers
• Including 60 million domestic passengers
• Cargo in the range of 3.4 million tonnes per
annum
Road Ahead
• The Indian aviation sector is likely to see clear skies ahead in the years to
come.
• Passenger traffic is projected to grow at a CAGR of over 15 per cent in
the
next 5 years.
• The Vision 2020 statement announced by the Ministry of Civil Aviation,
envisages creating infrastructure to handle 280 million passengers by
2020.
• Investment opportunities of US$ 110 billion envisaged up to 2020 with
US$ 80 billion in new aircraft and US$ 30 billion in development of airport
infrastructure.
• Associated areas such as maintenance, repair and overhaul (MRO) and
training offer high investment potential. A report by Ernst & Young says the
MRO category in the aviation sector can absorb up to US$ 120 billion
worth of investments by 2020.
• Aerospace major Boeing forecasts that the Indian market will require 1,000
commercial jets in the next 20 years, which will represent over 3 per cent
of Boeing Commercial Airplanes’ forecasted market worldwide. This
makes India a US$ 100 billion market in 20 years.