Indian Economy News

India to be a power house for airline growth on travel eagerness: Report

India is poised to become a major force in the future of airline growth, driven by a growing population and increasing eagerness to travel. According to a report by ING Bank NV, the country is set for significant structural growth, with airlines like Indigo and Air India placing historically large orders for new aircraft. India plans to open numerous new airports, and strategically located countries such as the UAE are expecting substantial transit passenger growth from Asia. Despite a global tempering of long-term growth outlooks to 3-4% annually post-pandemic, domestic travel within large countries, including India, has already reached or surpassed pre-pandemic levels.

The report highlights that the surge in airline travel in India and China will continue to drive global airline growth, particularly as international travel regains strength. The combination of a growing middle class and rising household incomes is expanding the customer base for airline travel, which is more influential than mere population growth. Younger generations, despite environmental concerns, tend to travel more frequently than older ones, contributing to the potential for growth in countries like India and Indonesia. India's civil aviation market is one of the fastest growing in the world, underpinned by the strong correlation between air travel, GDP, and household income.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.