In a good news for air travellers and India’s economy, Indian Aviation Minister Ajit Singh has said study has revealed that India will be the third largest aviation market by 2020.
New Delhi, March 27/Nationalturk – The Indian Aviation Minister Ajit Singh has said that a study has revealed that India will be the third largest aviation market by 2020 with projected investment to the tune of US$ 120.
“According to studies India would be the third largest aviation market by 2020. The country’s airports would be handling 336 million domestic and 85 million international passengers with projected investment to the tune of US$ 120 billion by 2020,” Singh said while addressing senior representatives of the aviation industry in Indian capital.
He said aviation sector brings enormous benefits to communities and economies around the globe. “It is a key enabler of economic growth, social development and tourism providing connectivity and access to markets globally. Air transport currently supports 56.6 million jobs and over US$2.2 trillion of global GDP,” he said.
Referring to India, the minister said India is among the countries witnessing highest growth in air passenger traffic. “The country’s airport infrastructure is undergoing modernisation with the installation of state-of-the-art facilities. New Greenfield airports are under construction and security, surveillance and air traffic navigation systems have been modernized”.
India is currently 9th largest aviation market
Stating that India is a growing Asian economy, Indian aviation minister said, “India is amongst the fastest growing and currently the 9th largest aviation market handling 121 million domestic and 41 million international passengers. Today, more than 85 international airlines operate to India and 5 Indian carriers connect over 40 countries.”
He revealed that studies suggest that by the year 2020, India will become 3rd largest aviation market handling 336 million domestic and 85 million international passengers with projected investment to the tune of US$ 120 billion.
Aviation accounts for 1.5% of India’s GDP
“Oxford Economics report has indicated that Aviation accounts for 1.5% of India’s GDP and supports 1.7 million jobs – with a further 7.1 million employed in other sectors including tourism through the catalytic effects of aviation,” Indian aviation minister said.
Maintaining that prospects and possibilities of growth of Indian aviation markets are huge, he said, “The gap between potential and current air travel penetration shows that India is presently at 0.04 air trips per capita per annum , which is far behind developed countries like US and Australia (more than 2 air trips per capita per annum), China and Brazil (0.3 air trips per capita per annum). The Low ratio of per capita air trips in India suggests a huge potential for the air traffic growth considering a relatively higher trajectory of economic growth in the country”.
Singh said the government has taken an important decision to liberalise the acquisition of aircraft by the scheduled, non-scheduled airlines, flying institutes and for private use. “At present prior permission from the Ministry of Civil Aviation is required before the acquisition of aircraft by them through Aircraft Acquisition Committee. Henceforth, no permission for acquisition of aircraft will be required from the Ministry of Civil Aviation and they will be free to acquire aircrafts as per their business plan and requirements. This policy decision will give impetus to the growth and expansion of airlines in India,” he hoped.
“The government has recently cleared Flexi Use of Airspace (FUA) by civil and military users. Implementation of FUA through civil and military coordination is an essential requirement to foster the air travel growth with ultimate benefit to our economy. I expect there will be a reduction of carbon emission by about 7 million kg. per annum by direct routing between 7 major city pairs only because of FUA,” added the minister.
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Faiz Ahmad / NationalTurk India News
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