Washington: The fast expanding aviation
sector of India can absorb as much as USD 120 billion in
investment by the year 2020, Civil Aviation Secretary Madhavan
Nambiar has said.
"As per the reports, Indian aviation sector has the
potential to absorb up to USD 120 billion of investment by
2020. Analysts predict that domestic traffic can reach
160-180 million by 2020, with the international traffic in
excess of 50 million," Nambiar said in his keynote address to
the US-India Aviation Partnership Summit here yesterday.
The summit is being attended by some 200 corporate
leaders from the sector from both the countries.
"Airport infrastructure in India is the one area
which has huge opportunity for the investors. The airport
upgrade action and modernisation plan, launched by Government
of India, will see an investment of approximately USD 10
billion by 2010," he said.
Nambiar said the Indian aerospace industry is one of
the fastest-growing aerospace markets in the world driven by
continued economic growth resulting in growing passenger
traffic and domestic aircraft demand.
"As per the estimates, Indian civil aircraft market
is valued at USD 90 billion involving sale of 1000 aircraft
during the period 2008-20. At present, the sector has around
407 aircrafts with almost the same number on order as well,"
he said.
India is also emerging as a potential international hub
for manufacturing and Maintenance, Repair & Overhaul (MRO) on
the back of its talent and engineering workforce, manpower
cost competitiveness, fast developing engineering services/R&D
expertise and strategic position in the South East Asia.
"India’s MRO segment is estimated to grow at 10 percent, reaching USD 1.17 Billion by 2010 and USD 2.6 billion by
2020," Nambiar said.
In 2008, the scheduled operators/companies were given
permission to import 62 aircraft.
"However, it is a fact that the current downturn has
seen many deliveries being deferred, but significantly not
cancelled. It is in this growth that lies our challenge in
creating a safe, secure, efficient and environment-friendly
systems conducive to meet this growth," he said.
Aerospace products have emerged as the fastest growing
component of US exports to India.
Nambiar said the successful retention of India in
Category-I status by the US Federal Aviation Administration
has helped India bring back aviation safety into the
spotlight. "This reaffirms that Indian safety standards are
compliant with international safety standards," he noted.
The FAA audit under the International Aviation
Safety Assessment Programme gives Directorate General of Civil
Aviation (DGCA), a level playing field in the area of safety
and maintenance standards.
This, he said, paves the way for allowing Indian carriers
to expand service into the US by adding flights through new
access points and code share agreements with US carriers.
PTI
First Published: Wednesday, December 09, 2009, 15:07