Vote on Account 2014: How FDI, PPP models have propelled aviation sector to soaring heights

The Indian aviation sector has shown consistent growth in the last ten years. According to FICCI-KPMG 2012 report, the industry’s passenger traffic grew to 14.4 crore in FY2011 from 7.3 crore in FY2006. One of the major factors that contributed to this growth is completion of airports through public private partnership mode.

In the last ten years, according to data released by Department of Industrial Policy and Promotion (DIPP), India’s aviation market has secured foreign direct investment (FDI) worth $456.84 million.

According to various estimates, air transport in India presently supports 56.6 million jobs and generates over $2.2 trillion of the global gross domestic product (GDP). It also estimated that India’s aviation market is 9th largest aviation market in world and it is expected to be 3rd by 2020.

At present, it caters to 11.7 crore domestic and 4.3 crore international passengers. Experts estimate that in the next decade India’s civil aviation market would reach out to 33.7 crore domestic and 8.4 crore international passengers.

In the last ten years, the aviation industry has come a long way. From being an industry which has been closed to foreign investors, the industry allowed foreign investors to invest in India’s airlines industry. And today, foreign airlines are allowed to have minority stake in India’s airlines companies.