NEW DELHI: In a major move to strengthen India's aircraft manufacturing sector, the government plans to create a dedicated entity to drive the industry's growth. Union Civil Aviation Minister K Rammohan Naidu announced this development at a recent conference in the national capital, New Delhi. The initiative aims to initiate aircraft manufacturing in India within the next five years, reflecting the country's commitment to expanding its role in the global civil aviation market.
India is currently one of the fastest-growing markets in the civil aviation sector worldwide. Recognizing this potential, the government is set to establish a special purpose vehicle (SPV) specifically designed to accelerate aircraft production within the country. This SPV will focus on overcoming the challenges and facilitating the establishment of a robust aircraft manufacturing ecosystem.
The conference, organized by the PHD Chamber of Commerce and Industry, highlighted the government's strategic efforts to boost domestic aircraft manufacturing. The establishment of this SPV marks a crucial step towards enhancing India's capabilities and positioning the country as a key player in the global aviation industry.
The move aligns with India's broader goals of self-reliance in the aerospace sector and creating job opportunities, fostering innovation, and enhancing technological capabilities within the industry. As the country continues to experience rapid growth in civil aviation, this initiative is expected to play a pivotal role in shaping India's future in aircraft manufacturing.
India Aviation Industry Growth:
India is currently the ninth-largest civil aviation market globally, with a market value of $16 billion. It ranks among the top five fastest-growing aviation markets, experiencing an annual growth rate of over 15.2%. The number of passengers on scheduled domestic flights has risen from 103.7 million in 2013-14 to 158.4 million in 2016-17. Despite this impressive growth, India's air travel penetration remains low, with just 0.04 trips per person per year, compared to 0.3 in China and over two in the US. As more people switch from traditional transportation methods to air travel, this growth trend is expected to continue. This growth indicates a significant need for investment in aircraft in the coming years. The ‘Make in India’ initiatives are expected to help reduce procurement costs substantially.
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