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180 mn domestic air travellers seen in India by 2020

December 09, 2009 14:02 IST

The fast expanding aviation sector of India can absorb as much as $120 billion in investment by the year 2020, civil aviation secretary Madhavan Nambiar has said.

"As per the reports, Indian aviation sector has the potential to absorb up to $120 billion of investment by 2020. Analysts predict that domestic traffic can reach 160-180 million by 2020, with the international traffic in excess of 50 million," Nambiar said in his keynote address to the US-India Aviation Partnership Summit in Washington on Tuesday.

The summit is being attended by some 200 corporate leaders from the sector from both the countries.

"Airport infrastructure in India is the one area which has huge opportunity for the investors. The airport upgrade action and modernisation plan, launched by Government of India, will see an investment of approximately $10 billion by 2010," he said.

Nambiar said the Indian aerospace industry is one of the fastest-growing aerospace markets in the world driven by continued economic growth resulting in growing passenger traffic and domestic aircraft demand.

"As per the estimates, Indian civil aircraft market is valued at $90 billion involving sale of 1,000 aircraft during the period 2008-20. At present, the sector has around 407 aircraft with almost the same number on order as well," he said.

India is also emerging as a potential international hub for manufacturing and maintenance, repair & overhaul (MRO) on the back of its talent and engineering workforce, manpower cost competitiveness, fast developing engineering services/R&D expertise and strategic position in the South East Asia.

"India's MRO segment is estimated to grow at 10 per cent, reaching $1.17 Billion by 2010 and $2.6 billion by 2020," Nambiar said.

In 2008, the scheduled operators/companies were given permission to import 62 aircraft.

"However, it is a fact that the current downturn has seen many deliveries being deferred, but significantly not cancelled. It is in this growth that lies our challenge in creating a safe, secure, efficient and environment-friendly systems conducive to meet this growth," he said.

Aerospace products have emerged as the fastest growing component of US exports to India.

Nambiar said the successful retention of India in Category-I status by the US Federal Aviation Administration has helped India bring back aviation safety into the spotlight.

"This reaffirms that Indian safety standards are compliant with international safety standards," he noted.

The FAA audit under the International Aviation Safety Assessment Programme gives Directorate General of Civil Aviation, a level playing field in the area of safety and maintenance standards.

This, he said, paves the way for allowing Indian carriers to expand service into the US by adding flights through new access points and code share agreements with US carriers.

Lalit K Jha in Washington
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