How India’s Aviation Clout Is Growing on the Back of Its Aspiring Travelers

India's regional air connectivity is playing catch-up with the demand of its aspirational travelers. And this is set to drive growth in India's aviation industry over the next few years.

This week, India was listed as the third-largest global aviation market by the International Air Transport Association (IATA).

In his speech at the IATA annual general meeting on Monday, Indian Prime Minister Narendra Modi said aviation is poised to become the center of major transformation and innovation in the times ahead. He added that India is prepared for all of these possibilities as the country has an aspirational consumer market.

According to IATA’s report, India’s 174 million passengers in 2024 accounted for 4.2% of global air traffic. This was significantly less than the United States’ 18% share and China’s 16.7%. However, India’s passenger volume has more than doubled as compared to just over a decade ago. Due to Indian travelers’ aspiration to explore, by late last year, international traffic from India was 20% higher than pre-Covid.

Regional Connectivity: According to Modi, the regional connectivity scheme UDAN has been a “golden chapter” in the civil aviation of India. The UDAN scheme, launched in October 2016, aimed to provide more affordable and accessible flying options to travelers across the country, especially in Tier-2 and 3 countries.

Under the scheme, several new regional airlines such as Fly91 and Star Air have started operations in India and are flying on underserved routes which are incentivized by the Indian government. According to a ministry of civil aviation release in April, 625 routes across 90 airports have been operationalized under the scheme. The scheme’s penetration into smaller markets has led to the number of airports across India to rise from 74 in 2014 to 162.

However, despite this growth, the aviation sector in India continues to be underpenetrated. This highlights the potential of the Indian aviation industry to keep growing as demand continue