The FICCI-KPMG India Aviation Report said the country is well on its way to become the third largest aviation market by 2020.

• With 81 million trips, India’s domestic aviation market grew at over 20.3% during Janurary-December 2015, the highest ever growth rate recorded in the world.
• According to the report, the Indian civil aviation industry has exhibited tremendous resilience to the global economic slowdown and ranks ninth in the global civil aviation market.
• This is largely attributed to the growing economy, increased competition among airlines, especially among low cost carriers, modern airports, greater use of technology, foreign direct investment and increased emphasis on regional connectivity.
• The report observed that the National Civil Aviation Policy (NCAP 2016), which is likely to be out by next month, would provide a significant fillip to the industry.
• The report suggests that aspects such as increasing disposal incomes, fall in prices of aircraft turbine fuel (ATF), increase in tourism, visa reforms, etc have placed India in a unique position. This brings the country closer to achieving its vision of becoming the largest aviation market by 2030.
• Public-private partnerships in the sector will get substantial support from the state in terms of financing, concessional land allotment, tax holidyas among other incentives, the report suggests.
• According to Amber Dubey, partner and India head of aerospace and defence at KPMG, the positive impact of NCAP 2016, rise in disposable incomes and the fall in ATF prices are likely to help India leapfrog into the top three of the world.
• India registered a growth of 17.1% in total passengers throughput financial year 2015-16 till January, 2016, standing at 184 million.
• According to International Air Transport Association, passenger traffic on international routes showed an increase of 6.5% in 2015 compared to 2014.