India's civil aviation shows sustained growth momentum

New Delhi: India's civil aviation sector is on a sustained growth trajectory, helped by a conducive policy environment, rising demand and steady infrastructure expansion, the Economic Survey said on Thursday.

As the country aims to be a global hub for aviation activities, the Survey said Indian airports can aspire to become global aviation hubs by promoting layovers and enhancing the transit experience for international passengers. "While the sector remains sensitive to global economic cycles and the need for continuous capacity upgradation, the current passenger volumes represent only a fraction of India's potential," it said. India is the world's third-largest domestic aviation market and the number of airports increased to 164 last year from 74 in 2014. In FY25, Indian airports handled 412 million passengers, and the same is projected to increase to 665 million by FY31. However, the Survey said the country currently operates approximately 0.11 airports per million people, significantly lower than the US (47.35) and China (0.39), signalling substantial headroom for further growth. "Expansion in India's airport and air navigation infrastructure and a growing ancillary ecosystem, including Maintenance, Repair, and Overhaul (MRO) and leasing, are strengthening the sector.

"These developments, along with technology integration, positions civil aviation as a key driver of nationwide economic connectivity and integration," the Survey said. On Wednesday, Prime Minister Narendra Modi highlighted the growth potential and policy stability as he wooed investors, saying that there are immense opportunities in aircraft manufacturing, pilot training, advanced air mobility and aircraft leasing areas in the country.