For years, plane makers Airbus and Boeing have made optimistic forecasts about growth of aviation in India - a rising middle class, growth in gross domestic product and under penetration of airlines making it a relevant market.
Earlier this year, Boeing projected India's demand for aircraft to touch 1,740, valued at $240 billion, over the next 20 years in India. This would account for 4.3 per cent of global volumes. The optimism is getting translated into orders, with Indian carriers placing multi-billion contracts to cater to growth plans. In August, IndiGo signed up with Airbus for a $25.7-billion order for 250 A320neo planes, largest ever order for the European plane maker. Previously the biggest single order in terms of planes was for 234 planes from Lion Air of Indonesia in 2013.
Boeing's latest market forecast claims it will deliver 38,050 planes till 2034 with the highest share (38 per cent) in the Asian market. India will require 1,740 planes over the same period.
The current fleet size in India does not stack up to some of the Asian countries or even China but IndiGo and Jet Airways announcements is an indication that aviation in India too is poised for growth.
According to Airbus India will be one of the top three aviation markets globally in the next 20 years. Airbus is expecting an annual growth rate of over 11 per cent for the domestic market in India over the next ten years, while the combined growth rate for domestic and international routes would also be more than 10 per cent.