The next 2 decades will see sustained growth in the Indian aviation sector.
While Indian airlines are expected to remain under stress for many more months, the country’s overall aviation development is set to soar in the long term, according to the International Air Transport Association (IATA).
International Air Transport Association
The forecast was made at an aviation forum in New Delhi, where industry and government officials discussed India’s aviation needs and projections.
IATA’s Head of Policy Analysis, Andrew Matters, said that India’s aviation industry can expect a compound annual development rate (CAGR) of 5.8% for the next 2 decades. This is in line with the estimates of several other aviation bodies and even plane manufacturers, which predict massive demand over the coming years.

At the International Air Transport Association (IATA) Aviation Energy Forum held in New Delhi on November 15th, Matters commented,
“We at International Air Transport Association (IATA) expect Indian aviation to cater to 430 million additional air passenger journeys to and from and within India in 2040 compared to 2019.”
Earlier this year, Boeing predicted that India will be the fastest-growing aviation market with a 7% annual increase until 2040. Airbus, too, has estimated similar numbers and says that India will need 2,210 new aircraft over the next twenty years.
As demand for more flights progressively rises, India is aware of the infrastructure requirements to support such development.
India’s Civil Aviation Secretary
Rajiv Bansal, India’s Civil Aviation Secretary was also present at the event and highlighted that by December, India will have inaugurated 6 new airports in a span of 12 months, reminding that two new airports – one in Itanagar and one in Goa – will be inaugurated in coming weeks.
Indeed, approximately 80 new airports are expected to pop up in India in the next 5 years to fuel the growing aviation sector. In the last 8 years alone, the number of airports in the country has raised from 74 to 141. This number is expected to shoot up to around 220 in the next half a decade if all goes according to plan.
Directorate General of Civil Aviation
Even India’s aviation regulator, the Directorate General of Civil Aviation (DGCA), is looking to hire more than 400 employees to monitor the country’s growing fleet size and ensure that rules are followed and corrective measures are taken.
Given the size of India’s aviation sector and the projected growth, the country can no longer remain detached from the industry’s sustainable goals. International Air Transport Association (IATA) believes India could be counted in the list of countries with enormous potential to produce sustainable aviation fuel (SAF).
Bansal also joined the conversation and stated that the concerned authorities will examine feedstock availability to make sustainable aviation fuel (SAF) and develop technologies to make sustainable fuel more affordable for airlines.

Sebastian Mikosz, Senior Vice President for Environment & Sustainability at International Air Transport Association (IATA), stated that sustainable aviation fuel (SAF) is expected to account for 65% of the decarbonization efforts of the industry, and India’s role in this sphere could be a significant one.
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