INDIA’S CENTURY — UNLOCKING THE POTENTIAL OF INDIAN AVIATION

Witness the renaissance of India’s aviation industry as it takes flight towards a Century of Prosperity unlocking extraordinary opportunities in India’s aviation sector

By COLONEL SANJAY JULKA (RETD) CEO, CLUB ONE AIR

The Indian economy is experiencing a remarkable expansion, with a GDP growth rate of 8.7 per cent in FY 2022, placing it among the highest in the world. Bob Sternfels, Global Partner at McKinsey, boldly declared that it is not just India’s decade but India’s century. As the economy flourishes, the aviation industry closely follows suit. The growth prospects for Indian aviation are staggering, and international investors are taking notice. Despite lingering concerns, India has made significant strides in addressing these issues, paving the way for a prosperous future in civil aviation.

INDIAN AVIATION GROWTH: A GLOBAL STANDOUT

The growth potential of Indian aviation is undeniable, and the numbers speak for themselves. Asian aviation is projected to grow at a compound annual growth rate (CAGR) of 5.1 per cent over the next 20 years, outpacing America’s 2.7 per cent and

Europe’s 2.3 per cent. Specifically, Indian aviation is projected to grow at a CAGR of 6.3 per cent over the next two decades, surpassing the 4.9 per cent growth rate for the rest of Asia.

India’s geographical advantage further solidifies its potential as a major aviation hub. With 50 per cent of the world’s population residing within a 6-hour flight time and 65 per cent within a 10-hour flight time, India becomes an attractive destination for airlines. Additionally, the country boasts the world’s third-largest domestic civil aviation market, further enhancing its appeal.

There has also been an increase in the number of business aircraft. In 2021 and 2022, approximately 90 registration/ deregistration entries were recorded, compared to approximately 40 in 20 and 35 in 2020. The United States has approximately 600 billionaires and more than 10,000 private jets. India has approximately 166 billionaires and around 132 private jets. Every year, about 34 billionaires are added to the list. The number of millionaires will be rising by 63 per cent over the next five years. Thus, there is sufficient and even greater potential for the growth of civil aviation including Business Aviation, in India over the next 20 years and beyond.

EXPANDING INFRASTRUCTURE: LAYING THE FOUNDATION FOR GROWTH

India has recognised the importance of infrastructure development in fostering a thriving aviation industry. Through the UDAN scheme, the number of operational airports has expanded significantly, growing from 74 in 2014 to 140 in 2022, including 31 international airports. This number is set to exceed 200 in the next five years. Furthermore, 21 Greenfield airports have been approved, with 11 already operational and 11 more scheduled for development, backed by substantial investments from the government and the private sector.

Exploiting Technology

The government’s commitment to technology and passenger facilitation is evident in the release of the “Digi Yatra” policy, which leverages biometric-based digital processing to enhance the travel experience and security measures at airports.

World Class Fbos And General Aviation Terminals

Establishment of General Aviation terminals, such as those in Mumbai, Delhi, Ahmedabad, and Kochi, demonstrates the focus on catering to the growing demand in the Business Aviation sector.

Three years ago, there was only one full-fledged General Aviation Terminal at Mumbai. Delhi had a General Aviation terminal for only the domestic sector. Even there, aeroplanes were parked far away, often on the opposite side of the runway. Not only does Delhi now have a distinct General Aviation terminal for all flights, but it also has specialised hangars and an apron for general aviation and business aviation aircraft. Ahmedabad and Kochi have also opened General Aviation terminals.