India will become the third largest aviation market in the world by 2020, according to a new FICCI-KPMG study.
The country’s domestic aviation market grew 20 per cent last year, with 81 million trips, accounting for the highest growth rate recorded worldwide.
Total passenger numbers to January 2016 stood at 184 million, 17.1 per cent higher than last year. Domestic passengers accounted for 80 per cent of these numbers.
The figures are estimated to reach 370 million by 2020.
The report attributes increases in tourism, increasing disposable income and visa amendments for the high numbers. The India Aviation 2016 report says that “This is bringing the country closer to achieving its vision of becoming the largest aviation market by 2030.”
“Enormous growth in domestic passenger traffic, substantial strengthening through government initiatives, decreases in global crude oil prices and airlines showing profits indicates a significantly positive transformation for the Indian civil aviation market,” says Harshavardhan Neotia, president, FICCI.