India To Become Third Largest Aviation Market : IATA
India will be among the top three aviation market by 2024 according to International Air Transport Association (IATA) in its 20- year air passenger forecast report. India is currently at seventh position in Global Aviation market.
Key Highlights Of Report
- The number of air passengers around the world will double to 8.2 billion in 2037.
- China will displace the US as the world’s largest aviation market in the mid- 2020. India will take the third place after US around 2024 surpassing UK.
- By 2037, India is expected to add 414 million passengers to its existing 572 million passengers.
- Home passenger traffic in India is growing at around 18.28 per cent to reach 243 million in 2018-19 and will grow to 293 million in 2020.
- When it comes to International traffic, it grew by 10.43 per cent to reach 65 million in 2018 and will grow to 76 million in 2020.
- The biggest growth in terms of air traffic will come from Asia- Pacific region with more than half the number of total new passengers in next 20 years.
- The Asia-Pacific region is expected to see the fastest growth at the rate of 4.8%, followed by Africa (4.6%) and West Asia (4.4%).
International Aviation Traffic Association (IATA): It is the trade association for the world’s airlines formed in 1945 and headquartered in Montreal, Canada. It represents around 280 airlines or 82% of total air traffic. It helps to formulate aviation sector policy and standards. It also provides training services in many areas of aviation.
Challenges To India Aviation Sector
The study identified several factors that can impact the future growth of Indian aviation industry:
The growth policy of 6.1% annually is expected to result in a total market of 520 million Indian passengers in 2037.The protectionist and other negative policy will hold India’s growth back to 4.9% and the total market will be 400 million in 2037.
Ease of Doing Business
India is now at 100th position among 132 countries on World Bank’s Ease of Doing Report. The improvement in this area will impact sustainable growth of aviation sector.
Travel and Tourism Competitiveness
India has also risen from 52nd place to 40th place in 2017 World Economic Forum’s Travel and Tourism Competitiveness Index. The improvements in this area as well as in airport infrastructure will further enhance India’s aviation market.
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