1、For updated information,please visit www.ibef.orgAugust 2025AVIATION2Executive Summary3Advantage India 4Market Overview 6Recent Trends and Strategies18Growth Drivers23Opportunities 34Key Industry Contacts36Appendix38Table of Contents3Executive summarySource:World Travel and Tourism Council,Airport A
2、uthority of India,News ArticlesNote:F Forecasted,*-Till July 20253rdlargestAir passenger traffic in FY26*137.29 millionFor 2028,forecasted contribution of travel&tourism to GDPUS$512 billion Expected expenditure of Indian travellers in 2030US$410 billion21312417818924525649020192020202120222023 2025
3、F 2035FTravel and Tourism Total Contribution to GDP(US$billion)341.05115.37188.89327.28376.43376.47137.29FY20 FY21 FY22 FY23 FY24 FY25 FY26*Air passenger traffic in India(millions)Domestic aviation market ranking as of 2025166.80270.34306.79334.70110.0822.0856.9469.6477.0626.46FY22FY23FY24FY25FY26*D
4、omesticInternationalInternational and domestic traffic(million)4Advantage India5Advantage IndiaADVANTAGE INDIA1432 Rising working group and wideningmiddle-classdemographyisexpected to boost demand.India has envisaged increasing thenumber of operational airports to220 by 2025.India will require over
5、2200 aircraftby 2042.1.Robust demand Growthinaviationaccentuatingdemand for MRO facilities.As of 2024,expenditure in MROaccounts for 12-15%of the totalrevenue;it is the second-highestexpense after fuel cost.Union Budget 2024-25 introducesincentives to boost MRO activities inaviation,including extend
6、ing exportand re-import periods for repairs andimplementing a 5%uniform IGST onaircraft parts.In June 2023,the US committed tocreating a global hub for MRO forhigh-end drones in India.4.Opportunities in MRO As per the present FDI Policy,100%FDIispermittedinscheduledAirTransport Service/Domestic Sche