Civil Aviation
India's civil aviation sector is the world's third-largest, experiencing robust growth driven by an expanding economy and government initiatives like the UDAN scheme for regional connectivity. Key institutions include the Ministry of Civil Aviation, responsible for policy and regulation, and the Airports Authority of India (AAI), which manages infrastructure. Major airlines like Air India and Indigo serve a vast network of cities, with a focus on improving passenger experience through DigiYatra and other digital services.
Key Aspects of Indian Civil Aviation
- Growth & Market Size: India's aviation market is one of the fastest-growing globally and is the third largest worldwide. The sector aims to connect more people and goods through air travel. India's commercial aircraft fleet has more than doubled over the past decade to 860 aircraft, with orders for another 739.
- Government Initiatives:
- UDAN (Ude Desh ka Aam Naagrik): This regional connectivity scheme connects smaller cities and towns to major hubs, making air travel more affordable.
- Digi Yatra: A project using facial recognition technology to provide a contactless and seamless passenger experience at airports.
- NABH Nirman: An initiative focused on expanding airport infrastructure to meet increasing demand.
- Major Airlines: The market includes Air India, Indigo, Akasa Air and Spicejet, which connect numerous cities within India and internationally.
- Infrastructure: The AAI oversees a network of international, domestic, and private airports, with ongoing expansion projects. Ministry of Civil Aviation anticipates the number of operational airports to increase to 190–200 by 2040.
- Regulatory Body: The Directorate General of Civil Aviation (DGCA), established in 1931, functions under the Ministry of Civil Aviation and is responsible for regulation and safety.
- Technology & Innovation: India is also focusing on modern technology, including the Gagan satellite navigation system, DigitalSky air traffic management, and a burgeoning drone policy.
- National Civil Aviation Policy 2016: Introduced several reforms, including fiscal support for regional connectivity, rationalized route dispersal guidelines, and relaxed requirements for international operations.
- Foreign Direct Investment (FDI): The FDI limit for scheduled air transport services has been increased to 100%, with up to 49% allowed under the automatic route. Foreign airlines can invest up to 49% in Indian air transport companies.
Aviation Sector Performance
- Passenger Traffic: India handles a significant number of air passengers annually, with recent figures exceeding 350 million passengers globally in the past year. The Ministry of Civil Aviation projects passenger traffic to increase sixfold by 2040, reaching 1.1 billion travelers.
- MRO Industry: The Maintenance, Repair and Overhaul (MRO) industry is developing rapidly, with an anticipated market value of $4 billion by 2031.
Historical Context
- The first commercial flight in India took off in 1911, carrying mail between Allahabad and Naini.
- J. R. D. Tata is often recognized as the father of civil aviation in India, playing a pivotal role in its development.
The CWCCI Chamber works closely with Central and State Government and all other relevant stakeholders to suggest policy framework for the development of the civil aviation sector.
