New Delhi: US aircraft manufacturer Boeing on Tuesday raised its 20-year market forecast for sale of passenger planes in India saying the demand for commercial jets will increase more than 4.5 times of the world market by 2031.
"India is projected to have highest passenger traffic growth in the world. It will need 1,450 new planes through 2031 worth a total of up to USD 175 billion," said Dinesh A Keskar, Senior Vice President (Sales) while releasing the company's latest "India Current Market Outlook" here.
Last year, the company had forecast India would need 1,320 passenger planes worth USD 150 billion until 2030.
In a similar projection, Boeing's rival Airbus said in its 'Global Market Outlook' that "in value terms, the single biggest market (for new aircraft) is China followed by the US, the UAE and India." The report was released at Airbus headquarters in France today.
At a press conference here, the Boeing official said India would need 1,201 single aisle planes -- like next generation Boeing 737 and new 737 MAX, worth USD 114 billion, 234 twin aisle aircraft worth USD 61 billion and 15 regional jets at USD 0.5 billion.
Despite Boeing being the leader in wide-body long-haul fleet segment in India, Keskar said the country will not be ordering larger planes like Boeing 747s and 777s, indicating that domestic flying would grow substantially in the country in the near future.
Though Indian carriers were improving their financial performance by raising yields through better capacity management, Keskar said "slowing of GDP growth, fuel prices and a weak Rupee could affect profitability and growth in near term."
Boeing expected air traffic in South Asia to grow the fastest in the world at an average rate of 8.4 percent over the next two decades.
"Passenger growth forecast over the next 20 years would be driven by an underlying economy with long-term growth projections of twice the world average and supported by the continued economic prosperity amongst a growing segment of the large Indian population, higher discretionary incomes, business progress and easier access to airports," he said.