The civil aviation sector plays a crucial role in driving growth and facilitating mobility, pushing the nation's economic progress forward
India is ranked 5th in the world's GDP rankings in 2024. India's economy boasts diversity and swift growth, fuelled by key sectors such as information technology, services, agriculture, and manufacturing. The civil aviation sector is also emerging as a crucial driver of growth and mobility and by implication is steering economic growth for the country. Today, India stands as the third-largest aviation market.
This boom can be traced back to a mix of factors including the expansion of tourism & infrastructure development, along with low-cost carriers and growth of disposable income. The construction of new airports, expansion of existing ones, and the introduction of world-class facilities further strengthen India’s position as a global aviation powerhouse. Air passenger traffic in India, comprising both domestic and international travel, is expected to reach 395 million in 2023-24. By FY2030, it is predicted that India's domestic airport passenger numbers will rise to 700 million, while its international airport passenger numbers will reach 160 million.
Moving to Renewables
Global experts across the world believe that India is on its way to becoming the most exciting market for global aviation due to investments made by the Indian government in airport infrastructure. However, the centre’s priorities are in the middle of a complex Venn diagram – maximizing economic opportunity while also moving steadily towards achieving its decarbonization goals. This can be seen clearly in their decision to promote carbon reduction initiatives.
Earlier this year, Cochin International Airport (CIAL) became the first airport in the world which is completely powered by solar energy. The unprecedented project is expected to avoid 3,00,000 tons of CO2 in the next 25 years – the equivalent of planting three million trees. A staggering 66 Indian airports have already achieved 100% green energy usage, powered by solar, wind, and hydro sources and 121 more are projected to become carbon-neutral by 2025.
In India, the Ministry of Civil Aviation (MoCA) has been spearheading the promotion of sustainable development in the aviation sector by encouraging the use of sustainable aviation fuel (SAF), a green alternative. This green revolution in Indian airports is not merely an environmental initiative; it is a strategic economic imperative.
By embracing sustainability, India is positioning itself as a leader in the global aviation industry, attracting investments and fostering innovation.
Shaping an Industry for the Future
Usage of SAF against conventional jet fuels would result in a lifecycle carbon reduction of up to 80 per cent carbon emissions. The Indian government is actively promoting the use of SAF and has set a target of achieving a 10 per cent blending of SAF with conventional jet fuel by 2030. When the entire world is faced with the humongous challenge of climate change & related impacts, devising a sustainable approach to scaling infrastructure is crucial. It appears the government is cautiously stepping in the right direction, by adopting a 360-degree approach.
To augment the airport infrastructure the government aims to develop 100 airports by 2024 under the UDAN (Ude Desh Ka Aam Nagrik) Scheme. To date, 74 airports have been developed. More than 2.15 Lakh UDAN flights have been operated and over 1.1 Cr passengers have availed of the benefits of UDAN flights so far. While new airports are being built to improve connectivity and bolster supply chain networks, this is being done with a green component. MoCA has issued guidance to developers of upcoming Greenfield Airports and the relevant State Governments, emphasizing the importance of working towards carbon neutrality and net-zero emissions. This includes promoting the use of green energy sources.
The Indian aviation industry has been growing at a compound annual growth rate (CAGR) of 18% over the last five years, according to a report by KPMG. The Indian Civil Aviation MRO market, at present, stands at around $900 Mn and is anticipated to grow to $4.33 Bn by 2025 increasing at a CAGR of about 14-15%.
Various stakeholders have now come into the picture as the transition provides for new arenas of innovation. For example, the Odisha Government has recently appointed RITES Ltd as the consultant for the airports in Rourkela, Jeypore and Amarda Road. The company has provided its expertise in green airport development. Earlier, the Railways PSU was signed on to prepare a Detailed Project Report (DPR) for Shivamogga Airport under the UDAN Scheme. This shift towards green practices also improves resource management, generates cost savings, and ultimately enhances the overall competitiveness of the aviation sector in the country.
India has firmly established itself on the global aviation map. As we continue to embrace the future of aviation, the industry has the potential to transform the way we travel and approach our decarbonization goals. The sky's the limit for this exciting and dynamic industry.
(The author is a professor at Assam University, views are personal)
