New Delhi: Global aerospace major Boeing expects demand for 2,300 new aircraft in India, valued at $320 billion, over the next 20 years.
According to the company`s 2018 Commercial Market Outlook (CMO) for India, factors such as rise in GDP output along with increase in infrastructure spend and growth of low-cost carriers will lead to the fulfilment of the demand forecast.
However, the outlook cited the volatile exchange rate, high fuel price and low fare yields as challenges faced by the domestic industry.
As per the 2018 CMO, India's commercial aviation industry has achieved 51 consecutive months of double-digit growth.
"The Indian economy is projected to grow by nearly 350 per cent over the next two decades to become the third largest economy in the world," said Dinesh Keskar, Senior Vice President of Sales for Asia-Pacific and India, Boeing Commercial Airplanes.
"This will continue to drive the growth of India`s middle class and its propensity to travel both domestically and internationally, resulting in the need for more new fuel-efficient short- and long-haul airplanes."
In 2018 alone, more than 10 million passengers, on average, travelled within India each month, the CMO said.
"To meet this increased domestic air traffic growth, we see the vast majority of available airplane seats coming from LCCs," said Keskar.
"The success of this market segment will mean more than 80 per cent of all new airplane deliveries in India will be single-aisles. And the superior economics and fuel efficiency of the new 737 MAX airplane will be the perfect choice for Indian carriers.