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Source: The post status of air travel in India has been created, based on the article “Aviation casts a K-like shadow on the ground” published in “Live mints” on 20th February 2024.
UPSC Syllabus Topic: GS Paper 3- economy-infrastructure- Railways and Airways
News: The article discusses the increase in air travel in India due to factors like ‘revenge travel’ and the ‘wealth effect.’ It notes that while air travel is booming, railway travel is recovering more slowly, reflecting a broader economic situation.
What is the current status of air travel in India?
Air travel in India is experiencing significant growth.From April to November, 101 million domestic flights were taken.
Projections indicate over 150 million flyers this fiscal year, surpassing the 2019-20 record of 141.6 million.
Railway travel is recovering slower than air travel. There are projections of carrying 2,94-0 million travelers in 2023-24, still below pre-pandemic levels.
What are the factors responsible for the increasing air travel in India?
Revenge Travel: Post-pandemic, people are traveling more to compensate for the lockdown period. This behavior is significantly boosting air travel numbers.
Wealth Effect: Increased wealth, especially from stock market gains, is leading to more spending on travel. This is evidenced by the tripling of Demat accounts during COVID, indicating more people investing and gaining wealth.
How does this reflect on the overall economy?
Indicator of Economic Behavior: The rise in air travel is a sign of changing economic behavior, driven by factors like ‘revenge travel’ and the ‘wealth effect.’
Impact of the Wealth Effect: The increase in stock portfolio values and the tripling of Demat accounts during COVID suggest that a part of the population has more disposable income, influencing their travel choices.
Air Travel vs Railway Travel: While air travel numbers are booming, the slower recovery in railway travel, with projections of carrying 2,94-0 million travelers in 2023-24, shows an economic divide in travel preferences and capabilities. This contrasting trends in air and railway travel highlight the varying economic realities across different segments of the Indian population.
Question for practice:
Discuss the factors driving the increase in air travel in India and how it reflects on the overall economy, particularly in comparison to railway travel trends.
