India’s domestic aviation market has become the third largest in the world and the overall civil aviation market* in India is all set to become the world's third largest by 2024^. By 2020, passenger traffic at Indian airports is expected to increase to 421 million.
As of May 2018, 588 airplanes were in-service in the fleet of Indian airlines. It is further expected to grow to 1,100 planes by 2027.
Domestic passenger traffic expanded at a Compound Annual Growth Rate (CAGR) of 13.91 per cent over FY06–18. International passenger traffic posted a CAGR of 9.36 per cent over FY06-18. Freight Traffic grew at a CAGR of 7.53 per cent over FY06-18. Freight Traffic is expected to grow at a CAGR of 7.27 per cent to reach 4.14 million tonnes in FY23.
During April-September 2018, Passenger* traffic in India stood at 169.45 million. Out of which domestic passenger traffic stood at 135.70 million while international traffic stood at 33.75 million. Total freight traffic handled in India stood at 1.80 million tonnes during the same time. During April-September 2018, domestic aircraft movement stood at 1.06 million while international aircraft movement stood at 0.22 million.
The Government of India has launched regional connectivity scheme named UDAN (Ude Desh ka Aam Nagrik) to make flying affordable for common man.
AAI is going to invest Rs 15,000 crore (US$ 2.32 billion) in 2018-19 for expanding existing terminals and constructing 15 new ones. It has opened airport sector to private participation, six airports across major cities are being developed under the PPP model. The Airports Authority of India (AAI) aims to bring around 250 airports under operation across the country by 2020.
According to various estimates, India will require investments worth Rs 3 - 4 lakh crore (US$ 46.55 - 62.06 million) to achieve a capacity for having a billion trips per year.
Note: *Domestic and International, ^As per IATA forecasts