India's Aviation Market Rapidly Growing: Airbus and Boeing Focus on Potential

India's expanding aviation sector is attracting attention from global aircraft manufacturers like Airbus and Boeing, as it emerges as a major player in the international market

India, the world's most populous country, has seen its aviation market grow at an accelerated pace, positioning itself as the third-largest in the world, following the United States and China. According to reports from AFP, India’s aviation industry holds immense potential, though it still lags behind in terms of air travel frequency. The country's per capita flight usage is just 0.12, which is only a quarter of China’s rate at 0.46. Despite its vast size, approximately three-quarters of which is comparable to the European Union, India’s transport infrastructure has traditionally leaned heavily on rail travel.

This reliance on railways highlights the vast untapped potential for air travel in India, making it a goldmine for global aviation companies. Boeing, for instance, estimates that even if just 2% of the 1.8 million daily rail passengers switched to air travel, the Indian aviation market could double in size. Boeing forecasts that India’s aviation traffic will grow by over 7% annually until 2043.

In response to this growing demand, the Indian government has taken significant steps to enhance the country's aviation sector. Since 2016, Prime Minister Narendra Modi has advocated for improved air connectivity between major cities and smaller towns, famously expressing his vision for a future where "even ordinary people in slippers would travel by plane." To support this vision, the Indian government has committed substantial financial resources to expand the aviation infrastructure.

From 2014 to 2024, the number of airports in India has more than doubled, increasing from 74 to 157. Furthermore, the Indian government plans to expand this number to between 350 and 400 airports by 2047, marking the country’s centenary of independence. Additionally, the government is investing in workforce development, with plans to train 30,000 pilots and 30,000 maintenance personnel over the next 20 years.

The rapid growth of the aviation industry in India is proving to be a game-changer for aircraft manufacturers, who are increasingly focused on the Indian market. In 2023, Air India placed a massive order for 470 aircraft, including 250 from Airbus and 220 from Boeing, making it one of the largest aviation contracts in history. The airline followed up with an additional order of 100 Airbus aircraft in 2024.

IndiGo, India’s largest airline, also placed a historic order in 2023, committing to 500 Airbus planes, the largest commercial aircraft order ever placed. The airline continued its expansion by adding another 30 planes to its fleet the following year.

Looking ahead, Boeing predicts that India will need at least 2,835 new aircraft by 2045, emphasizing the continued growth and demand within the country’s aviation sector. Airbus India and South Asia’s representative, Remi Maillard, noted, “India is the rising star of the global aerospace industry. As the fastest-growing commercial aviation market in the world, this trend will continue for the next 20 years.”

In conclusion, the aviation industry in India presents immense growth opportunities for global manufacturers like Boeing and Airbus. With its expanding infrastructure, increasing demand, and government support, India is poised to become one of the leading aviation markets in the world over the next few decades.