The Indian aviation sector was recently announced as the fifth-largest aviation market in the world by the International Air Transport Association (IATA). India successfully handled a remarkable 241 million air passengers in 2024.
Now, while Indian air passenger volume is increasing year-on-year, the Indian air travel market remains majorly untapped, with only 4% of the population flying regularly.
In comparison to the developed countries, only a fraction of the Indian population uses air transport. However, this trend is gradually changing with Indians emerging as more frequent flyers to different destinations, both domestic and international.
Now seems to be a golden phase for Indian aviation, driven by favourable demographics, a rapidly expanding middle class and a rising demand for air travel. According to the data by DGCA, India’s air traffic is expected to grow significantly to almost double by 2030, and the government is making strategic infrastructure development to further propel this growth.
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Young India Will Drive the Aviation Sector
This rise in demand will have to be met by parallel infrastructure development. The government has realised the growing importance of the aviation sector in the economic growth of the country, and therefore, the supply is also growing to meet this demand. Over the last decade, the number of airports has significantly grown and is further set to grow to 400 airports over the next 25 years, aimed at enhancing air connectivity in the country. Indian airlines are also increasing their fleet size and have placed aggressive aircraft orders to be delivered in the next 10 years. This highly anticipated growth is set to create various job opportunities, both direct and indirect, in the Indian aviation sector.
Challenges
Like any other industry, the aviation sector also comes with its share of challenges. As is commonly known, it is one of the most expensive and risky sectors to run. The ever-evolving geopolitical dynamics, high operational costs, mounting fuel prices and evolving consumer preferences make it a very challenging and complex industry. It needs strategic resilience, continuous adaptation and digital upgradation. Lean profit margins and strict government policies and rules make running an airline very difficult.
Passenger safety has always been a cornerstone for the aviation industry, and because of that, it is always under critical scrutiny, which leads to stricter rules and regulations. It is a high-investment sector, returns on which are extremely volatile and can take a really long time.
Conclusion
India’s aviation sector is witnessing a swift rise, driven by enhanced air connectivity, a growing middle class and increased fleet capacity. The Indian aviation industry has firmly established its position in the global market. The aviation sector can tremendously contribute to India’s economic growth, job generation and global integration, while also promoting tourism, trade and infrastructure development.
