Indian Aviation Industry Lifts Economy With USD 53.6 Billion Contribution

India’s soaring aviation sector has firmly established itself as a major driver of economic growth, contributing USD 53.6 billion annually to the economy, equivalent to 1.5% of the national GDP.

The industry directly and indirectly provides employment to around 7.7 million individuals across the country.

This was highlighted on the opening day of the International Air Transport Association (IATA) Annual General Meeting, where Amitabh Khosla, IATA’s Country Director for India, Nepal, and Bhutan, underscored aviation’s indispensable role in driving employment, trade, investment, and connectivity.

Khosla emphasised the direct correlation between a nation’s air connectivity and its overall economic competitiveness.

He noted, “In 2023, the industry generated a USD 53.6 billion contribution to India’s economy, underpinning 7.7 million jobs.”

Aviation-supported tourism also played a key part, contributing ₹27.1 billion to GDP and employing 5 million people.

Moreover, international tourists alone added another USD 29.4 billion annually through local purchases, underscoring the sector’s wider impact on services and retail.

Post-Pandemic Recovery & Growth

India’s aviation market has staged a robust recovery following the COVID-19 pandemic.

The domestic segment rebounded earlier, and by December 2024, international air travel had surged nearly 20% above pre-pandemic levels from 2019.

Domestic operations were over 8% higher, reflecting strong and sustained demand.

“The positive trajectory highlights the deepening appetite for international travel,” said Khosla, adding that this momentum provides a solid base for future growth.

In 2023, the Middle East remained the most frequented international destination for Indian travellers, followed by Asia Pacific and Europe.

Airlines have responded to growing demand by increasing flight frequencies and seat capacities.

Scheduled flights rose by 77.7% to 1.3 million in 2024, with domestic services dominating this rise, from 613,000 in 2014 to nearly 1.1 million flights in 2024.

IndiGo led the charge, operating 53% of all departing flights from or within India.

Increased competition among carriers has resulted in reduced airfares.

According to IATA data, real airfares in 2023 were 25% lower than in 2011, offering greater affordability to Indian consumers.

India currently operates 116 commercial airports, 96 of which provide direct connections, with 521 international flights departing daily.

Over the past five years, 103 new international routes have been launched. The nation now supports 99 operational airlines.

India has also cemented its position as the sixth-largest air cargo market globally, transporting 3.3 million tonnes of freight in 2023.

With growing emphasis on sustainability, Khosla highlighted India’s potential for developing Sustainable Aviation Fuel (SAF), hinting at a greener future for the sector.

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