The latest announcement by Air India marks a remarkable development in India’s aviation sector. The national carrier has pledged to purchase 470 passenger aircraft from leading manufacturers Airbus and Boeing, rounding up to approximately USD 100 billion. This significant deal bears testimony to India’s vision to become a global paramount in aviation, expecting to need over 2,000 aircraft within the next 15 years. This is the first major order placed by Air India in the last 17 years, with delivery of the first A350 expected by the year end of 2023.
The Significance of the Aircraft Deal
The deal signifies India’s readiness to adapt and grow with the global aviation industry. It paves the way for India to become the third-largest player in the aviation sector and creates fresh opportunities in aerospace manufacturing, aligning with India’s ‘Make in India-Make for the World’ vision.
Overview of India’s Aviation Sector
India’s Civil Aviation market is experiencing rapid growth. It is poised to play a crucial role in driving India towards becoming a USD 5 trillion economy by 2024. Projections indicate that the nation’s aeroplane fleet will quadruple to approximately 2500 aeroplanes by 2038.
Recent Government Initiatives
The National Civil Aviation Policy (NCAP) 2016 is a notable government initiative aimed at enhancing affordability and connectivity in aviation, thus promoting ease of doing business, deregulation and e-governance. A vital component of the NCAP 2016 is the Regional Connectivity Scheme or UDAN (‘Ude Desh ka Aam Nagrik’). The scheme aims to integrate and optimize Agri-harvesting and air transportation under dynamic conditions, contributing to Agri-value chain sustainability. Another significant initiative is the Centre’s decision to monetize 25 airports through Public-Private Partnerships by 2025 under the National Monetization Pipeline.
Challenges Faced by the Indian Aviation Sector
India’s aviation sector faces challenges such as high operating costs due to factors like fuel prices, airport charges, and taxes. Another hurdle is infrastructure constraints, which include limited airport capacity, outdated air traffic control systems and inadequate ground handling facilities. The regulatory framework is yet another concern as it is heavily regulated and compliance with various rules and procedures can sometimes be complex and time-consuming.
Leveraging Technology for Future Growth
To overcome these challenges, the aviation sector needs to leverage modern technology to enhance efficiency and passenger experience. This includes embracing artificial intelligence, robotics, and big data analytics to improve operations, reduce costs and enhance safety.
Sustainability as a Priority
Adopting sustainable practices is crucial for the future of aviation in India. The sector needs to focus on using alternative fuels and reducing carbon emissions to mitigate its impact on the environment.
Encouraging Regional Connectivity
There is a need to develop regional airports to enhance connectivity to remote areas of the country. This requires developing a regional air transport network and incentivizing airlines to operate in these areas.
Past UPSC Civil Services Examination Questions
The development and challenges of airports in India under the Public-Private Partnership (PPP) model were examined in the 2017 UPSC civil services examination. Similarly, understanding ‘airspace’ and its implications was questioned in the 2014 examination. Candidates are advised to familiarise themselves with such issues to better prepare for future examinations.