Airways : Status of Civil Aviation in India – UPSC GS3

Status of Indian Civil Aviation Industry:
  • Aviation Sector:
    • India’s Civil Aviation is among the fastest-growing aviation markets globally and will be a major growth engine to make India a USD 5 trillion economy by 2024.
  • Passenger Traffic:
    • 3rd largest aviation market by domestic air passenger traffic which stood at 274.05 million in FY20.
    • It grew at a Compound Annual Growth Rate (CAGR) of 12.91% during FY16-FY20.
  • Airports:
    • 75 airports opened in 75 years of Civil Aviation in India while under the aegis of Ude Desh Ka Aam Naagrik (UDAN), within a span of 3 years, work has been initiated to provide scheduled connectivity to 76 unserved / 20 underserved airports, 31 heliports and 10 water aerodromes.
  • Fleet Strength:
    • 713 aircraft of scheduled Indian carriers operating year around; private scheduled airlines plan to add over 900 aircrafts in the next 5 years.
  • Commitment to Greener Airspace:
    • Comprehensive regulatory policies and strategies adopted to reduce aviation carbon footprints.
  • Ensuring Hassle-free Travel:
    • Incorporated systematic approaches to redress passenger grievances, and improve operational efficiencies across the system.
Opportunities in Indian Aviation Market:
  • FDI: 100% Foreign Direct Investment (FDI) allowed under Automatic route for Ground Handling Services and Maintenance Repair and Overhaul Services (MRO) and for both green and brownfield projects.
  • Scope of Growth: The Indian civil Aviation MRO market, at present, stands at around USD 900 million and is anticipated to grow to USD 4.33 billion by 2025 increasing at a CAGR of about 14-15%.
  • The nation’s airplane fleet is projected to quadruple in size to approximately 2500 airplanes by 2038.
  • Connecting New Airports: The government aims to develop 100 airports by 2024 (under the UDAN Scheme) and create world-class civil aviation infrastructure to be at par with global standards.
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