India is the 9th largest aviation market in the world with a size of around US$ 16 billion and is poised to be the 3rd biggest by 2020. India aviation industry promises huge growth potential due to large and growing middle class population, rapid economic growth, higher disposable incomes, rising aspirations of the middle class and overall low penetration levels.
Civil aviation industry in India is experiencing a new era of expansion driven by factors such as low cost carriers, modern airports, foreign direct investments in domestic airlines, cutting edge information technology interventions and growing emphasis on regional connectivity. Civil aviation sector has been growing steadily registering a growth of 13.8% during the last 10 years. The air transport in India has attracted FDI of over US$ 569 million from April 2000 to February 2015.
The Indian airports have a combined capacity to cater to 220.04 million passengers and 4.63 million tonnes cargo per annum and handled 168.92 million passengers and 2.28 million tonnes cargo in 2013-14. As per estimates, passenger traffic at Indian Airports is expected to increase to 450 million by 2020 from 159.3 million in 2012-2013.
Looking at future air transportation requirements and desire to become a global player in developing/commercializing aerospace technologies, India is rapidly building capabilities to emerge as a preferred destination for manufacturing of aerospace components.
Over the next decades, India undoubtedly has the potential to become a significant part of the global aerospace supply chain as India offers cost advantages of between 15 to 25 per cent in manufacturing, together with its large procurement appetite. Robust technical and engineering capabilities backed by top-notch scientific and technical institutes are other positive offerings on the table.