India has ascended to the coveted position of the world’s third-largest aviation market in terms of passenger traffic, a monumental achievement attributed to the sector’s unprecedented expansion.
This significant rise, highlighted in a recent report by the International Air Transport Association (IATA), underscores the nation’s burgeoning economic prowess and its strategic investments in air travel infrastructure. The aviation sector is not merely a conduit for travel; it is rapidly emerging as a critical engine for India’s economic growth, job creation, and global integration, fostering connected and accessible urban centres.
Amitabh Khosla, IATA’s Country Director for India, Nepal, and Bhutan, credited this remarkable ascent to a trifecta of factors: the strengthening of Indian airlines, the relentless expansion of air connectivity, and a robust upgrade in airport infrastructure. Khosla passionately articulated that aviation serves as a vital catalyst for India’s economy, significantly boosting employment, trade, and investment. According to the IATA report, the aviation sector now contributes a notable 1.5 per cent to India’s Gross Domestic Product (GDP) and directly and indirectly supports an impressive 7.7 million jobs. This highlights the sector’s pervasive impact beyond just air travel, creating diverse opportunities across allied industries.
The symbiotic relationship between aviation and tourism further amplifies its economic footprint. Domestic tourism, intrinsically linked to enhanced air connectivity, contributes an astonishing ₹2,710 crore annually. Meanwhile, international tourists, facilitated by expanded flight networks, infuse an additional $29.4 billion into the Indian economy through local spending. Cumulatively, the broader travel and tourism sector accounted for a substantial 6.5 per cent of India’s GDP and employed 8.9 per cent of the workforce in 2023, showcasing its integral role in the nation’s socio-economic fabric.
The surge in demand has propelled airlines to aggressively ramp up flight frequencies and augment seat capacities. Scheduled flights have witnessed an astounding 77.7 per cent surge, reaching approximately 1.3 million in 2024. The lion’s share of this growth originates from domestic flights, which escalated from 613,000 in 2014 to nearly 1.1 million in 2024. IndiGo has emerged as a dominant force in this expansion, operating over 53 per cent of all departures within and from India, reflecting its strategic positioning and operational scale in a highly competitive market.
Consumers have been significant beneficiaries of this intensified competition. Khosla noted that increased competition has driven real airfares down by 25 per cent in 2023 compared to 2011, making air travel more accessible to a broader demographic. India’s aviation landscape currently boasts 116 airports offering commercial services, with 96 providing direct connections and an impressive 521 outbound international flights daily. The past five years alone have seen airlines add 103 new international routes, expanding India’s global reach. The country now hosts 99 operational airlines, reflecting a vibrant and diverse aviation ecosystem. Furthermore, India has established itself as the world’s sixth-largest air cargo market, handling a colossal 3.3 million tonnes of freight in 2023, underscoring its pivotal role in global supply chains. By the close of 2024, international passenger volumes had already surpassed 2019 levels by 20 per cent, and domestic passenger traffic was up by over 8 per cent, cementing India’s robust aviation outlook and its trajectory towards becoming a global aviation powerhouse.
Also Read: Shivamogga Karnataka’s First Flight Training Centre Takes Off
