India is home to a growing, confident young population, and a vibrant startup ecosystem driving consumption and innovation at scale. There's an air about India. So, it's no surprise that Indian aviation, with millions of aspirational air passengers and more than 1,350 commercial aircraft in the order pipeline, has the world's attention.
According to IATA, more than 4.4 bn passengers travelled by air in 2023, along with $8 tn worth of global trade - 33% of total by value. Nearly 60% of global tourists arrive by plane, making an economic contribution of $27.1 bn, and supporting 5 mn people in India. And each flight - of which there are more than 35 mn each year - requires dozens of crews, engineers, caterers, ground-handlers and other trained staff to make it happen.
UN's International Civil Aviation Organisation (ICAO) declared that investment in air connectivity has a multiplier effect of 3.1 to GDP, and each aviation job creates 6.1 others. According to Air Transport Action Group's (ATAG) '2024 Aviation: Benefits Beyond Borders', the sector supports 86.5 mn global jobs and contributes $4.1 tn, 3.9% of the global economy. In India, according to IATA, overall contribution of aviation is 7.7 mn jobs and $53.6 bn to GDP.
The 2022 privatisation of Air India, along with IndiGo, the emergence of two sizeable, well-capitalised and professionally-run local airlines set the direction for Indian aviation. Their combined aircraft order book, valued at well over $150 bn, leaves no doubt as to ambition and commitment. As does massive investment, both public and private, in India's aviation infrastructure, including doubling of operational airports from 74 to 159 in just the last decade, and the imminent opening of second airports in Delhi and Mumbai.
It is, nevertheless, remarkable that, even as India surpasses 350 mn annual air travellers and becomes the world's third-largest domestic air travel market, most of its opportunity lies ahead. With a country of 1.4 bn people and 6.5% annual GDP growth, yet an intensity of air travel 1/5th that of China, potential demand is enormous.
India has long punched well below its weight, operating a fraction of the long-haul fleet of even some city-states. As this situation is addressed, and more non-stop flights are added between India and the world's major cities, global air travel flows will be reshaped.
There is opportunity to better serve, and draw back to Indian carriers, the 35-mn-strong Indian diaspora. And, then, there's opportunity for India to connect the world. 130 mn international travellers fly over India each year, with many connecting through an airport nearby. The right combination of network, customer experience and value for money, coupled with increasing business and tourism allure, can shift the centre of aviation gravity and steer more economic benefit toward Indian soil.