India’s aviation industry has expanded at a rapid pace to become the world’s third-largest aviation market in terms of passenger traffic, according to a report compiled by the International Air Transport Association (IATA).

IATA’s country director for India, Nepal and Bhutan, Amitabh Khosla, said India’s rise to the third rank in the global market comes on the back of stronger airlines, growth of connectivity, and increased airport infrastructure.

He described the aviation industry as a key driver of employment, economic activity, international trade and investment in the country.

India’s aviation now accounts for 1.5 per cent of the country’s Gross Domestic Product (GDP) and has created approximately 7.7 million jobs, both directly and indirectly, across the country, the report states.

Khosla said, “In 2023, the industry made a $53.6 billion contribution to India’s economy, underpinning 7.7 million jobs in the country.”

Tourism, supported by aviation, contributes Rs 2,710 crore to the GDP. International tourists add another $29.4 billion annually to the economy through local purchases of goods and services. “Overall the travel and tourism sector accounts for 6.5 per cent of the nation’s GDP and 8.9 per cent of total employment in 2023,” he added.

The Middle East remained the top international destination for Indian flyers in 2023, with 13.7 million passengers, followed by the Asia Pacific region and Europe.

To meet growing demand, airlines have ramped up flight frequencies and seat capacities. Scheduled flights increased by 77.7 per cent to around 1.3 million in 2024. Most of these were domestic, flights with increased from 613,000 flights in 2014 to nearly 1.1 million in 2024. Indigo led this expansion, operating 53 per cent of all departing flights from and within India.

Consumers have also benefited from increased competition, which led to a 25 per cent reduction in real airfares in 2023 compared to 2011, Khosla noted.

Currently, India has 116 airports offering commercial scheduled services, with 96 of them providing direct connections and 521 outbound international flights each day. Over the last five years, 103 new international routes have been introduced. There are currently 99 operational airlines in the country.

India has also established itself as the sixth-largest air cargo market in the world, transporting 3.3 million tonnes of air freight in 2023.

As of December 2024, the international sector stood nearly 20 per cent above its 2019 levels, while domestic operations were over 8 per cent higher which reflects the strong outlook for the future, he added.