According to the Economic Survey, the country’s civil aviation industry has “huge potential” because of rising middle-class demand, increased disposable incomes, and favorable demographics.
Civil aviation sector
Air travel has also recovered since the relaxation of restrictions brought on by the coronavirus outbreak. The UDAN scheme, which has significantly improved regional connectivity through the opening of airports in the hinterland, was cited among several reasons that are supporting the civil aviation sector in the Economic Survey for 2022–23, which was presented to Parliament on January 31, 2023.
President of India Droupadi Murmu
The total number of tourism routes has expanded to 59 under the UDAN (Ude Desh ka Aam Naagrik) scheme, of which 51 are already active and which aim to facilitate/stimulate regional air connectivity by making it inexpensive.
The poll concluded that India’s civil aviation industry “has enormous potential due to increased demand from the middle class, expansion in population and tourism, better disposable incomes, favorable demographics, and wider penetration of aviation infrastructure.”
Air travel has increased again, according to the poll, as a result of the global relaxation of travel restrictions and the containment of COVID-19 infections.
As opposed to the significant loss in air traffic (down 54%), and in passenger traffic handled (down 66%), which was shown in FY21, a recovery was seen in that year’s financials.
“The current fiscal year has also demonstrated a recovery, with both passenger and freight flow close to the pre-COVID-19 levels. At 150.1 lakh or 106.4% of the pre-COVID level, the total number of passengers carried in December 2022 was 150.1 lakh (average for 11 months from April 2019 to February 2020).
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According to the report, “overall air cargo tonnage during November 2022 amounted at 2.5 lakh MT, which is 89% of the pre-COVID levels.”
Airports Authority of India
The Airports Authority of India (AAI), state governments, public sector organizations, and civic enclaves have all received approval from the government for the revival of their existing unserved or underserved airports and airstrips totaling 4,500 crores. 21 greenfield airports have also been given in-principle authority to be built.
Since the UDAN program’s start, more than one crore air travelers have taken use of its advantages. The Airport Authority of India has already received payment in the sum of 104.19 core as viability gap funding (VGF) for the UDAN during FY21 and FY22.
The survey noted that bank credit had decreased and that credit for shipping and aviation had increased. Credit to the shipping and aviation sectors declined by 7.9% and 8.7%, respectively, in November 2022, according to the report. This was due to uncertain growth forecasts in the global markets and inconsistent credit allocation to the transport industry.
According to the poll, industries with enormous untapped potential, such as inland water transportation and civil aviation, are also given enough encouragement.
Enhancing collaboration among many stakeholders and ministries is also a priority concurrently. Additionally, this will improve the efficiency and efficacy of investments and aid in the resolution of compliance-related problems.
On January 31, 2023, President Droupadi Murmu gave her first address to the joint session of Parliament. She stated that India has risen to become the third-largest aviation market in the world and is expanding quickly, with the country now having 147 airports, up from just 74 in 2014.
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