With the conclusion of the Global Aviation Summit 2019, India came out the star with the ‘Vision 2040’ document predicting the nation’s air passenger traffic to grow sixfold by 2040.
The Global Aviation Summit 2019 was held in Mumbai this year from 15-16 January, the theme being “Flying for All”. Aviation ministers from numerous Asian, Middle Eastern and Eastern European nations attended, but India was definitely the centre of attention.
India has one of the world’s fastest growing aviation sectors, developing at around 20 per cent per year, over the past four years. India’s Minister for Commerce said that Vision 2040 will outline a road map to achieve certain goals, and make India a “global hub” for the aviation sector.
For instance, the ‘Vision’ document said India would consider investments of up to $2 billion for low traffic airports, and recommending the country establish a leasing industry to prevent domestic airlines going overseas for maintenance, repair and overhaul facilities.
Vision 2040 also stated that India’s scheduled airline fleet will rise from 622 to 2,360 in March 2040, forcing airlines to order more planes to meet the demand. Currently, over 1,000 deliveries are pending for for five airlines.
The country is also expected to have 190-200 airports by 2040. This will require about a $40-50 billion investment, excluding land acquisition cost.
India also sees air cargo quadrupling to 17 million tonnes as cargo is processed paperless and faster. The creation of a Air Cargo Logistics Promotion Board (ACLPB) is said to allow the implementation of new policies.
The government indicates goals such as bringing in a goods and services tax (GST) on aviation turbine fuel, apparently to compensate for the small amounts of GST foregone in the short term.
New Delhi predicts that the growth in the industry could generate over $28 billion in annual revenue by 2040, up from the current $11.4 billion.
India became the seventh largest aviation market with in 2017-18. After this Summit, it is now expected to become the third largest by 2022. The United States currently holds second place. These factors may outline significant opportunities to become involved in the growth of India’s civil aviation sector.