India will require 1,750 new passenger and cargo aircraft over the next 20 years to meet an “exponential rise” in both passenger and freight traffic, according to Airbus’ latest India Market Forecast.
The French aircraft manufacturer said to help meet this growth, the country will need 1,320 new single-aisle aircraft and 430 wide-body aircraft valued at $255 billion.
Airbus said while much of the air traffic growth is expected to be driven by the fast expanding economy, rising wealth and urbanisation, ambitious government backed regional connectivity programmes are also set to enhance demand for air travel.
By 2036, Indians will each make four times as many flights as today. As a result, traffic serving the Indian market is forecast to grow 8.1 per cent per year over the next 20 years, almost twice as fast as the world average of 4.4 per cent.
Domestic Indian traffic is expected to grow five-and-half times over the next 20 years (2017-2036) reaching the same level as USA domestic traffic today, making it one of the world’s fastest growing markets.
Airbus president for commercial aircraft in India, Srinivasan Dwarakanath said: “Make in India is at the heart of our strategy. Airbus has the largest footprint in India of any International aircraft manufacturer, nationwide across all aircraft programmes.
“Our sourcing volume has grown 16 times over the past ten years and it is currently at more than $550 million annually.”
Airbus said India is set to become the world’s third largest aviation market by 2019/20 – after the USA and China. On average one Airbus said an aircraft will be delivered to India every week for next 10 years.