India’s Aviation Industry Set for Soaring Growth with Budget 2024-25

In a promising announcement during the interim Budget presentation for 2024-25, Finance Minister Nirmala Sitharaman highlighted the ongoing expansion of existing airports and the development of new ones.

The minister underscored the remarkable progress witnessed by the country’s aviation sector over the past decade.

Rapid Development and Increased Connectivity

Sitharaman noted that the number of airports in India has doubled to 149 in the last ten years, signalling substantial growth. Additionally, Indian carriers have proactively placed orders for over 1,000 new aircraft, reflecting the burgeoning demand in the market.

UDAN Scheme and Enhanced Accessibility

The rollout of air connectivity to tier-two and tier-three cities under the Ude Desh ka Aam Naagrik (UDAN) scheme has been extensive, with 517 new routes now catering to 1.3 crore passengers.

The UDAN scheme, aimed at making flying more affordable, has contributed significantly to enhancing accessibility across the nation.

Strategic Investments and Fleet Expansion

Three domestic carriers, namely Air India, IndiGo, and Akasa Air, have collectively ordered a remarkable total of 1,120 planes in less than a year. Akasa Air’s recent announcement of ordering 150 Boeing 737 Max aircraft further underscores the sector’s buoyant outlook.

Tata Group’s Air India Leads the Way

In a significant move, Tata Group-owned Air India ordered 470 planes, with 250 from Airbus and 220 from Boeing, demonstrating a strong commitment to expansion and modernization.

IndiGo, the country’s largest airline, also contributed to the growth trajectory by placing a substantial order with Airbus for 500 narrow-body planes.

Government’s Vision for the Future

Civil Aviation Minister Jyotiraditya Scindia hailed the Budget as aspirational and ambitious, emphasizing its focus on capital expenditure, expansion of targeted social schemes, and initiatives aligned with India’s net-zero targets.

He tweeted, “This well-rounded budget fuels our 2047 roadmap – onwards to Reform, Perform, and Transform!”

Conclusion

The Budget for 2024-25 unveils a promising future for India’s aviation industry, characterized by robust expansion plans, enhanced connectivity, and strategic investments. With a clear vision and ambitious goals, the sector is poised to contribute significantly to the nation’s economic growth and development.