INDIA IS POISED TO BECOME THE 3RD LARGEST DOMESTIC AVIATION MARKET AND
THE 3RD LARGEST BUYER OF COMMERCIAL PASSENGER PLANES IN THE WORLD.
In the recent years, Aviation activity in South Asia has largely been dominated by India, currently the fastest growing market in the world. Aviation Industry in India holds around 69% of the total share of the airlines traffic in the region of South Asia. In March, India became the third-largest domestic aviation market in the world.
As this rapid aviation growth occurs, India needs to gear up and prepare for this growth with strategies in place for massive infrastructure development, skilled resources and aircraft financing, world class services at existing airports and a larger outreach for connectivity- even smaller cities at regional level.
The current Civil Aviation Secretary RN Choubey has been quoted as saying that US$10 billion would be spent in next five years to develop airport infrastructure in India so that the country could become the world’s third largest aviation market in seven years, rejuvenating 400 odd strips that have been lying unused. In addition, the Indian Government’s intention of drawing up an action plan for revival of 160 unserved and underserved airports which can be revived at an approximate cost of Rs 50 crore to Rs 100 crore each. Indian airports will also need to construct 400 parking bays and enhance airside capacity within five years. Otherwise airlines will face challenges in implementing their base and network plans. Safety will also play a crucial role and airport incidents will be a major challenge.
The growth of the Indian Aviation industry brings a huge opportunity for India and its economy, however there are challenges and obstacles that need to be paid attention to, Infrastructure bottlenecks, skilled workforce, availability and increase in equipment’s, availability of finance are some persistent challenges for the industry. It could be a smooth flight or a turbulent one and in order to conquer this uncertainty The Economic Times presents the Indian Aviation Forum to bring together stalwarts from the industry, association members and policy makers, to strategies the future of the Indian Aviation Industry.
One of the most significant initiatives is the NCAP 2016 is to “ESTABLISH AN INTEGRATED
ECO-SYSTEM WHICH WILL LEAD TO SIGNIFICANT GROWTH OF CIVIL AVIATION
SECTOR, WHICH IN TURN WOULD PROMOTE TOURISM, INCREASE EMPLOYMENT
AND LEAD TO A BALANCED REGIONAL GROWTH”.
It is in this context that NCAP (National Civil Aviation Policy) 2016 provides for a Regional Air Connectivity Scheme (RCS or the Scheme)- to facilitate / stimulate regional air connectivity by making it affordable. The scheme has governmental support in various ways that will be discussed in the Forum.
The Economic Times Indian Aviation Summit | January 2018 | New Delhi