IndiGo’s record purchase big boon to Indian economy: Scindia

Forum Gandhi Updated - June 20, 2023 at 09:20 PM.

Expresses optimism regarding employment opportunities associated with the deal

Union Minister of Steel and Civil Aviation Jyotiraditya M Scindia | Photo Credit: -

IndiGo’s groundbreaking order for 500 Airbus jets has propelled India’s thriving civil aviation sector to yet another milestone, according to Civil Aviation Minister Jyotiraditya Scindia. This achievement follows Air India’s order in February of 470 aircraft from Airbus and Boeing, highlighting the enormous potential of the sector.

Scindia emphasised the significant economic multiplier effects of civil aviation, stating that every dollar invested in the industry yielded $3.1 in new growth, and that each direct job in civil aviation created 6.1 indirect jobs.

The Minister expressed optimism regarding employment opportunities associated with the IndiGo deal, underlining the transformative impact of the civil aviation sector on India’s economy. He pointed out that India’s leading carriers have placed orders exceeding the size of the entire national fleet in 2013-14, with Air India’s order of 470 aircraft and IndiGo’s recent order of 500 planes. The current fleet of around 700 aircraft is expected to expand to nearly 2,000 planes within the next seven to 10 years.

Also read: IndiGo’s strategic move to buy 500 aircraft sends frenzy among aviation, market watchers

As India’s aviation market already ranks third globally and continues to expand rapidly, the country’s aviation infrastructure is poised for a substantial capacity expansion in the foreseeable future. Scindia stated that the annual passenger throughput capacity in the six major metropolitan cities is expected to nearly double by 2030, reaching 420 million passengers compared to the current 221 million.

Aviation hubs

Scindia reaffirmed the government’s commitment to establishing aviation hubs in India, with Delhi being the first hub in focus. He highlighted the importance of having aviation hubs within the country’s borders, instead of relying on hubs located outside the eastern or western borders. The government aims to fulfil Prime Minister’s vision of democratising civil aviation by expanding infrastructure, fleets, and creating an international footprint within India, he said.

Published on June 20, 2023 15:01

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