The International Air Transport Association (IATA) recently released a report detailing the forward progress of India’s aviation market. According to IATA’s report, the number of people travelling to/from/or within India has increased substantially over the last eight years.
In 2010, 79 million people were reported to have travelled to/from/or within the country. By 2017, this figure reached 158 million and IATA projects the numbers will reach 520 million by 2037.
To date, the industry supports up to 7.5 million jobs in India, which broken down surmounts to 390,000 industry jobs, 570,000 in the value chain, along with 6.2 million in the tourism sector. India’s aviation sector contributes roughly $30bn annually to the country’s GDP.
Currently, the third largest domestic market behind the US and China, India’s domestic load factors reached an impressive high of 90% in February 2018, bolstered likely by a 70% drop in the average domestic fares since 2005. Additionally, a total of 90 million domestic passenger trips were recorded in 2017, equating to 7.3% of India’s population.
In terms of its international market, India today links directly to 304 global destinations, up from 230 reported in 2008. IATA also highlighted that while the country’s international market is growing more slowly than domestic, the segment garnered roughly 60 million global journeys to and from India in 2017. Roughly 41% of the nation’s direct international connectivity is to the Middle East.
IATA’s report also took note of factors critical to the future growth of the country’s aviation sector. On the one hand, India’s standing within the World Bank’s Ease of Doing Business survey has risen from 132 to 100, a figure that the country will need to continue working on to ensure sustainable growth for aviation.
Similarly, the country has improved its standing in the 2017 World Economic Forum’s Travel and Tourism Competitiveness Index to reach 40th place. Continued improvements in airport infrastructure density, tourism and visa policies will help India climb even further on the rankings.
"Meeting the significant growth potential of Indian aviation will also create challenges – for the airlines, its industry partners and policy-makers. For example, this will require the right type of infrastructure at the right time and in the right place,” commented Brian Pearce, IATA’s Chief Economist and the report’s author.
“Equally, the broader business and policy environment should not place hurdles which inhibit growth and reduce the level of benefits that aviation can deliver to the nation. The industry, its supply chain partners and the government and policy-makers have a clear mandate to work in collaboration towards the common goal of ensuring that aviation’s economic and social benefits are fulfilled.”