Summary:

India's aviation sector is poised for rapid expansion, aided by greater air connectivity, growing disposable incomes, and increased infrastructure investment. Despite having 18% of the world's population, India ranks third in passenger numbers but accounts for just around 4% of global aviation traffic, showing latent potential. A Jefferies analysis points to low domestic air travel per capita. India handles 0.2 billion passengers per year with 850 aircraft and 150-160 airports, compared to China's 0.7 billion passengers, 4,000 aircraft, and 250 airports. With no high-speed rail network, aircraft is essential for movement. Challenges include aircraft shortages caused by supply chain concerns, high ATF taxes, and limited airspace owing to geopolitical limitations.

Source: IBEF

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