Indian aviation industry is booming and this Adani stock could be a big winner
air passenger market by 2030, after China and the US, as per the International Air Transport Association (IATA). The aviation market, estimated at $13.5 billion in 2024, is projected to reach $23.2 billion by 2029, implying a compounded annual growth rate (CAGR) of 11.4% during 2024-2029. No nation in the world is buying as many aeroplanes as India.
The country's largest airlines have ordered nearly 1,000 jets this year, committing tens of billions of dollars to a spending spree unparalleled in aviation. The bulk of the growth of Indian aviation has been among homegrown airlines, which have clocked a 36% increase in passengers since 2022. Air India has been adding Airbus aeroplanes to its fleet, a game-changer for the aviation sector.
The A350, known for enhancing long-distance travel, reflects Air India's dedication to modernization, elevating the airline's global presence while setting a new standard for the industry. According to India Brand Equity Foundation (IBEF), a Trust established by the Department of Commerce, India’s passenger traffic grew from 137.5 million in financial year 2022 to 160 million in financial year 2023 and is expected to reach 350 million by financial year 2030. The massive transformation will be led by the rising working group, widening middle-class demography and significant infrastructure investments.
The growth in passenger traffic will give rise to the enhanced requirement for large service-driven airports, transforming them from mere connectivity hubs to urban development (metropolis) nodes. According to Airbus, India will be the fastest-growing aviation market, with an investment of $12 billion set to be poured into ramping upairport infrastructure. India has set a target to hit 200
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