The growth, a Ficci-KPMG report claims, has put India well on its way to be the third-largest aviation market by 2020 and largest by 2030.
With 81 million trips, India's domestic aviation market grew at over 20.3% during January-December 2015, making it the highest growth rate recorded in the world, said a study released by Ficci-KPMG as part of 'India Aviation Report 2016' report.
The growth, report claims, has put India well on its way to become the third-largest aviation market by 2020 and largest by 2030.
The report suggests that aspects such as increasing disposable incomes, fall in prices of Aircraft Turbine Fuel (ATF), increase in tourism, visa reforms, etc. have placed India in this unique position.
Amber Dubey, partner and India head of aerospace and defence, KPMG, said, "The positive impact of NCAP (National Civil Aviation Policy) 2016, rise in disposable incomes and the fall in ATF prices are likely to help India leapfrog into the top three of the world. One hopes that the government can match domestic ATF prices with global levels for a three-year experimental period. MRO is likely to see a huge revival if the service tax is zero-rated.
Growth of aviation and tourism can create a huge multiplier in terms of GDP growth and jobs."
The report sheds light on the astounding growth of 17.1% in the total passenger for FY16 till January, standing at 184 million. Number of passengers is expected to reach around 370 million by 2020, with domestic traffic constituting around 80% of the total.
According to International Air Transport Association (IATA), passenger traffic on international routes showed an increase of 6.5% in 2015 comparison to 2014. In comparison, during April-December 2015, international passengers at Indian airports grew at 7.7%. Middle East continues to lead in the growth of revenue passenger kilometre (RPKM) followed by Asia-Pacific, Latin America and Europe. North America and Africa showed sluggish growth. By 2034, it is expected that Asia-Pacific will be the biggest market for global aviation.
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