India rises to third place in global aviation market, IATA report shows

Daijiworld Media Network – New Delhi

New Delhi, Jun 2: India has soared to become the world’s third-largest aviation market in terms of passenger traffic, thanks to rapid expansion in the sector, according to a new report released by the International Air Transport Association (IATA).

Amitabh Khosla, IATA’s Country Director for India, Nepal, and Bhutan, credited the achievement to strengthened airlines, expanded connectivity, and upgraded airport infrastructure.

He emphasized that aviation is a vital driver of India’s economy, boosting employment, trade, and investment. According to the report, the aviation sector now contributes 1.5 percent to India’s Gross Domestic Product (GDP) and supports around 7.7 million jobs, both directly and indirectly.

“In 2023 alone, aviation contributed $53.6 billion to the Indian economy, reinforcing its significance,” Khosla said.

Tourism, closely tied to the aviation sector, adds further value to the economy. Domestic tourism contributes Rs 2,710 crore annually, while international tourists bring in an additional $29.4 billion through local spending. Overall, the travel and tourism sector accounts for 6.5 percent of India’s GDP and employs 8.9 percent of the workforce in 2023.

The Middle East emerged as the top international destination for Indian travelers last year, with 13.7 million passengers, followed by Asia Pacific and Europe.

To meet rising demand, airlines have ramped up flight frequencies and expanded seat capacities. Scheduled flights have surged by 77.7 percent, reaching approximately 1.3 million in 2024. Most of this growth came from domestic flights, which increased from 613,000 in 2014 to nearly 1.1 million in 2024. Indigo has led this charge, operating over 53 percent of all departures in and from India.

Consumers have also benefited from greater competition, which has driven real airfares down by 25 percent in 2023 compared to 2011, Khosla noted.

Currently, India boasts 116 airports offering commercial services, with 96 providing direct connections and 521 outbound international flights daily. In the past five years alone, airlines have added 103 new international routes. The country now has 99 operational airlines.
Additionally, India has established itself as the world’s sixth-largest air cargo market, handling 3.3 million tonnes of freight in 2023.

Khosla highlighted that by the end of 2024, international passenger volumes had already surpassed 2019 levels by 20 percent, while domestic passenger traffic was up by over 8 percent — a clear indication of India’s robust aviation outlook.

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