It is projected that India's Aerospace and Defence (A&D) market will hit about $70 billion by 2030 as the momentum is expected to continue to gain momentum with improved infrastructure and government thrust. India's growth in flights and passenger traffic has been extremely rapid over the past five years, at more than 15 percent per year, increasing from about 70 to 200 million passengers in the past 10 years. In addition, the number of foreign flyers from India is also reported to be about 100 million in 2020, suggesting a strong demand for airline services and seats.
There are robust domestic airlines such as Indigo, Jet, Go Air, Vistara and others from a single carrier, namely Air India / Indian Airlines until the 1990s, fighting for a share in the increasingly growing market pie. This gives rise to overwhelming demand for new aircraft, with all airlines placing significant aircraft orders over the next five years to meet the rising domestic and international needs of the travellers. As the economy grows and boosts the demand from an increasing middle class for air travel for leisure, industry and other visits this growth growth is likely to continue steadily in coming years.
Smaller aircraft, corporate jets, helicopters etc. are projected to expand dramatically for inclusive growth and faster movement as the demand from corporate and other travelers increases with economic growth.
The advance of the domestic aviation development of local aircraft, helicopters and other aerospace products in the last century has largely been limited to public sector entities such as HAL, NAL, ISRO, but the turn of this century has seen a substantial increase in the participation of the private sector, assisted by large corporate houses such as Tata, Mahindra, L&T and Godrej. Such businesses have made a strong entry into the aerospace industry,
on the basis of their technical abilities and experience gained in other areas of the market.
The Indian aerospace industry for the production process is relatively small as compared to developed economies. It is set, however, for an ambitious growth period based on substantial tailwinds over the next 10 years.
Factors that drive progress are as demonstrated:
(a) Big acquisition of defence aircraft with offset commitments and opportunities;
(b) India is poised to break into the world's top three civil aviation markets with a 20% + rise in traffic over the past five years, resulting in significant orders of commercial aircraft for domestic airlines
(c) Availability of technological talent and experience;
(d) Facilitating the Government's policy framework for 'Make in India', growth of infrastructure, business environment and the inaugural National Civil Aviation Policy.
To conclude, with rapid growth in demand for aircraft and parts, the Indian aerospace industry is close to plunging itself into a global arena. The nation has many benefits, such as low labour rates, high technology availability, design and technological personnel and skills, high development markets, and active support from modern government policies.