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As India’s aviation sector adapts to rising passenger demand, backed by expansion of domestic circuits and forecasts of soaring aviation growth, CAPA predicts that India could handle 1.3 billion passengers and operate 4,000 aircraft by 2043. There is a need to modernise aviation infrastructure, expand facilities, drive efforts to train and retain qualified professionals and more to accommodate growth effectively. Backed by robust expansion of domestic circuits and bolstered by international forecasts of soaring aviation growth, india has become a prominent global player in this arena.

The significance of India’s aviation sector cannot be overstated, with a burgeoning middle class and increased disposable income, air travel has become more accessible to a larger segment of the population.

According to a recent analysis by the World Travel and Tourism Council (WTTC), India’s Travel and Tourism sector is poised to make a substantial contribution of INR 16.5 trillion in the year 2023 alone. This trend aligns with the country’s dynamic economic landscape and rapid urbanisation.

As the Indian aviation sector evolves to accommodate greater passenger and cargo traffic, companies are poised to play a pivotal role in providing a range of services, from maintenance to advisory support. According to a study by the Centre for Asia Pacific Aviation

The projected growth in air traffic over the next two decades is expected to have a cascading effect on various industries and economic sectors including aircraft manufacturing, airline operations, airport services, tourism, hospitality, and many more.

The evolution of Indian aviation has been nothing short of remarkable, transitioning from its humble beginnings to a modern, thriving industry. This transformation, peppered with significant milestones, has been driven by factors like liberalisation, technological advancements, and visionary leaders.

According to the Civil Aviation Ministry ‘s statistics in May 2023, there was a remarkable growth in the number of passengers carried by domestic , reaching a record-breaking 50.3 million. This marks an annual growth of 42.85 percent compared to the corresponding period of the previous year, during which 35.2 million passengers travelled in domestic carriers.

The future will see consumers benefit from greater choices in terms of destinations, flight options, and competitive pricing, while the investment in the sector will also increase to meet the pressing need for new airports, infrastructure as well as feeder transportation networks.

One of the key drivers of this change is India’s robust economic growth. The nation’s expanding GDP has bolstered disposable incomes and facilitated increased air travel. This growth has led to a large portion of the population achieving higher living standards, more individuals now have the means to travel by air for business, leisure, and other purposes. This surge in demand has compelled the aviation industry to expand its offerings and services.

Additionally, urbanisation has led to the establishment of more airports and improved connectivity. Over the years, the government’s policy and visionary approach to aviation trends has surely recognized the significance of connectivity in shaping and supporting the industry’s future.

The strategic improvements in regional connectivity also play a significant role. The Ministry of Civil Aviation (MoCA), has introduced several Regional Connectivity Schemes (RCS) such as  to enhance affordable regional air connectivity, while also encouraging the exploration of new destinations.

According to the MoCA’s annual report for 2022-23, the tourism sector has witnessed significant progress, with 63 new routes and a dedicated focus on unexplored destinations in the North East.

According to the MoCA’s annual report for 2022-23, the tourism sector has witnessed significant progress, with 63 new routes and a dedicated focus on unexplored destinations in the North East.

Through the Small Aircraft Scheme (SAS), various operators have been granted 184 routes to operate RCS flights, connecting 23 new destinations. These encompass heliports in Shella, Khliehriat, Nongstoin, and Jowai in Meghalaya, water aerodromes in Mayabunder, Kaziranga, North Goa, South Goa, and previously unserved airports in Daltonganj, Jharkhand, and Pachmarhi Biosphere, Madhya Pradesh. Many of these locations lacked air connectivity in the past, and this incremental approach opens the door for future expansion.

Flying towards sustiable Future

Another interesting trend is the focus on balancing growth with sustainability. It is commendable that Cochin International Airport, holds the title of the world’s first fully solar-powered airport, showcases how innovative strategies can enhance both efficiency and sustainability in aviation. As aviation companies consider adoption of new fuel, policies, operational strategies and initiatives to take solid steps for environmental sustainability.

The future holds a promise that holistic approaches that include waste reduction, enhanced recycling, on-site waste-to-energy tech, and renewable energy utilisation, can bring a change in the sector.

Leveraging technology and innovation will encourage the adoption of sustainable aviation fuels ) for airlines in their effort to curtail greenhouse gas emissions.Technological innovations, including more fuel-efficient aircraft, advanced navigation systems, and digital solutions, will enhance efficiency and passenger experience.

Although SAFs offer considerable emission reductions, their production remains limited in scale and yet to be fully realised. It’s imperative to overhaul our policies, facilitating increased airline involvement in SAF research to better understand the requirements and find the best solutions. This could also be incorporated into airlines’ corporate social responsibility (CSR) initiatives.

Another crucial aspect of growth is the support that airlines receive from MROs. According to Deloitte’s study, the Indian MRO industry is projected to grow from USD 1.7 billion in 2021 to a substantial USD 4.0 billion by 2031. Modern MRO facilities not only aid airlines in verifying accurate baseline emissions but also facilitate judicious energy procurement, proper raw material extraction, and thereby advance the principles of reduce, reuse, and recycle. The synergy of sustainable government policies and collective efforts from the airline industry is crucial to achieving our sustainability objectives, ultimately leading to a greener future for Indian aviation.

Modernising, skilled workforce: Need of the hour

Despite substantial growth, India’s aviation infrastructure, including airports and airspace management, will need modernising. Expanding these facilities with enhanced regulatory clarity is crucial to accommodate increasing passenger and cargo volumes. One factor that works in India aviation’s advantage is the availability of a skilled workforce as we are championing training and retaining qualified pilots, technicians, and air traffic controllers.

Across the globe fluctuating fuel prices, high taxes, and operational costs can strain airlines’ profitability and competition among airlines can lead to pricing pressures, affecting profitability.

In the future India’s growing middle class and increasing disposable incomes will continue to drive air travel demand. The industry’s expansion beyond major cities into smaller towns and cities is anticipated and improved regional connectivity will play a pivotal role in reaching underserved areas, boosting economic growth, and fostering tourism.

The sector is sure to make strides as airlines, airports, and stakeholders are aligned to collaborate to address challenges collectively, fostering a more sustainable and adaptable industry.

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