Domestic and International Traffic

India’s aviation industry presents immense growth opportunities as it remains largely untapped, particularly considering that air travel is still relatively expensive for a significant portion of the population

BY ROHIT GOEL

The Indian civil aviation sector experienced significant growth during the year 2022 and showcased its potential as one of the fastest-growing industries in the country. Noteworthy development is the industry’s successful recovery from the impact of the COVID-19 pandemic. Air traffic movements in the fiscal year 2023 (AprilDecember 2022) reached 236.71 million, a substantial increase compared to 131.61 million during the same period the previous year.

In terms of passenger traffic, domestic passenger numbers for FY22 were estimated at 166.8 million, reflecting a year-on-year increase of 58.5 per cent, while international passenger traffic reached 22.1 million, a 118 per cent YoY increase compared to FY21. Freight traffic also displayed positive growth, with a compound annual growth rate (CAGR) of 2.52 per cent between FY16 and FY22, reaching 3.14 million metric tonnes (MMT) from 2.70 MMT. In FY23 (AprilDecember 2022), freight traffic stood at 2,390,320 tonnes. Projections suggest that freight traffic in Indian airports has the potential to reach 17 million tonnes by FY40. Additionally, the number of aircraft movements witnessed an increase from 1,757,112 in FY22 to 2,029,090 in FY23 (April-December 2022).

Looking ahead, the Indian civil aviation sector is predicted to overtake all, becoming the world’s thirdlargest air passenger market by 2030 after both China and the United States, according to the International Air Transport Association (IATA). This growth trajectory is accompanied by an increase in the number of aircraft operating in the sector, projected to reach 1,100 planes by 2027. To accommodate the rising air traffic, the Indian government has been actively working on expanding the number of airports. As of 2022, there were 131 operational airports in the country, and the plan is to increase this number to 220 by 2025.

India’s aviation industry presents immense growth opportunities as it remains largely untapped, particularly considering that air travel is still relatively expensive for a significant portion of the population. The upwardly mobile middle class, which constitutes nearly 40 per cent of the population, holds significant potential as the aviation sector becomes more accessible. To promote the industry, the government has implemented the UDAN-RCS scheme, aiming to enhance air connectivity by offering affordable, economically viable, and profitable travel options on regional routes.

Resumption Of Commercial Scheduled International Flights

The scheduled commercial international passenger