<\/p>\n
News:<\/span><\/b> Recently, India has opened its airspace for international travel for the first time since the outbreak of Covid-19 in 2020 after a period of two-year. <\/span><\/p>\n The sector is going to witness<\/span> rebound due to easing in the covid-led disruptions, and simultaneously, due to important reform measures undertaken by the government.<\/span>\u00a0<\/span><\/p>\n Civil aviation has become a vehicle of economic change in India, and it is going to face strong growth in coming years,<\/span>\u00a0<\/span><\/p>\n The government has launched its flagship scheme known as<\/span> Ude Desh Ka Aam Nagrik<\/span><\/b>. It connects some of the most remote cities of India such as Jharsuguda, Odisha. These areas will emerge as new growth avenues for the country.<\/span><\/p>\n At present, the <\/span>number of airports<\/span><\/b> stands at 140 in 2021. India will witness growth in the number of both <\/span>greenfield<\/span><\/b> and <\/span>brownfield airports<\/span><\/b> in the next 2-3 years. Therefore, the number of airports is bound to reach the tally of 220 by 2025.<\/span><\/p>\n India\u2019s <\/span>aircraft<\/span><\/b> fleet is also likely to grow<\/strong>, by 110-120 every year. <\/span><\/p>\n In addition, the number of pilots trained by the Flying Training Organisations (FTO) is also going to increase<\/strong> in the near future.<\/span><\/p>\n Allied sectors rise <\/span><\/b>d<\/strong>uring the pandemic period<\/strong>: Allied sectors of Aviation like air cargo have seen exponential growth in a short span of two years. As a result, India\u2019s share in international cargo traffic movement went up from 1. 8% to 19%.<\/span><\/p>\n Similarly, reform measures undertaken in the drone sector<\/strong> will make drones part of almost every sector in the coming years. It will lead to an explosion of start-ups and skilled manpower. It will also bring huge economic benefits to Indian economy.<\/span><\/p>\n The civil aviation sector is highly prone to <\/strong><\/span>disruptions<\/span><\/b> in the future. It may be due to geopolitical disturbances and a new pandemic in the future.<\/span>\u00a0<\/span><\/p>\n India\u2019s taxation regime on Air Turbine Fuel (ATF)<\/strong> is very high as compared to the rest of the world. For example, at present, it now costs twice as much as the pre-Covid-19 rates. <\/span>\u00a0<\/span><\/p>\n The Aviation industry is also highly elastic to price change.<\/strong> For example, a minor rise in air fares could adversely impact the demand of air travel in the short term.<\/span><\/p>\n Rationalising ATF<\/span><\/b>: Recently, 24 states\/UTs have executed taxation reform (VAT) on the Aviation Turbine Fuel (ATF) rates. In addition, there are chances that remaining states\/UTs will also join this reform regime soon.<\/span>\u00a0<\/span><\/p>\n India needs to focus on international travel, as well as the air cargo segment.<\/span><\/p>\n Source: <\/span><\/b>The post is based on an article \u201c<\/span>Up & Up: Airports, Pilots, Passengers, Cargo, Drones<\/span><\/b>\u201d published in The Times of India<\/strong> on 7<\/strong><\/span>th<\/strong> Apr 22<\/strong>.<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" News: Recently, India has opened its airspace for international travel for the first time since the outbreak of Covid-19 in 2020 after a period of two-year. The sector is going to witness rebound due to easing in the covid-led disruptions, and simultaneously, due to important reform measures undertaken by the government.\u00a0 What are the expected… Continue reading Up & Up: Airports, Pilots, Passengers, Cargo, Drones\u00a0<\/span><\/a><\/p>\n","protected":false},"author":10328,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10496],"class_list":["post-178104","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-times-of-india","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704711434},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/178104","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10328"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=178104"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/178104\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=178104"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=178104"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=178104"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}What are the expected trends in the Indian Aviation Sector in the coming years?<\/span><\/b>\u00a0<\/span><\/h5>\n
What are the challenges?<\/span><\/b>\u00a0<\/span><\/h5>\n
What is the way forward?<\/h5>\n