The Indian aviation industry is one of the fastest growing Aviation Industries in the world with private airlines accounting for more than 75 percent of the sector of the domestic aviation market (as on 2011). The industry is growing at a compound annual growth rate (CAGR) of 18 percent. The country has 454 airports and airstrips, of which 20 are designated as international airports
Mr. Ajit Singh, Union Civil Aviation Minister has stated that the Indian aviation sector will become one of the top five civil aviation markets in the world over the next five years. Currently, India ranks ninth in the global Civil Aviation Market.
With the liberalization of the Indian aviation sector, the industry had witnessed a transformation with the entry of the privately owned full service airlines and low cost carriers.
The sector has also seen a significant increase in number of domestic air travel passengers. Some of the factors that have resulted in higher demand for air transport in India include the growing middle class and its purchasing power, low airfares offered by low cost carriers, the growth of the tourism industry in India, increasing outbound travel from India, and the overall economic growth of India.
In addition to these factors, the emphasis on modernization of non-metro airports, fleet expansion by airlines, service expansion by state owned carriers, development of the maintenance, repair and overhaul (MRO) industry in India, opening up of new international routes by the Indian government, establishment of new airports, renovation and restructuring of the existing airports have added to the growth of the industry.
Leading aircraft manufacturers Airbus and Boeing have expressed optimism over the growth of the Civil Aviation Industry in India. As per Airbus, the country would need 1,032 new aircrafts worth around US $ 138 billion by 2028. On a similar note, Boeing has also predicted that the sector would require 1,150 commercial jets worth US$ 135 billion in the next 20 years.