India prepares for air traffic boom with major aircraft orders
- India has a population larger than China's but currently has three times less air traffic.
- Air India, now owned by Tata Group, placed an order for 100 aircraft in December 2024.
- The country is investing $170 billion to expand its airport infrastructure and aircraft fleet.
India, with a population exceeding that of China, is experiencing significantly lower air traffic, only one-third of China’s air traffic. The country's vast geography and a substantial diaspora contribute to rising domestic and international travel demand. Domestic airlines have responded by increasing their aircraft orders, with forecasts suggesting that 1,700 new aircraft will be delivered to Indian airlines by major manufacturers Airbus and Boeing in the coming years. This growth culminated in December 2024 when Air India, under the Tata Group’s management after its 2022 acquisition, placed a substantial order for 100 new aircraft including the A350, A320, and A321 models. To support this anticipated growth, India's airport infrastructure is expected to expand from 145 operational airports to 220 in the next five years, necessitating an investment of approximately $170 billion in total for new airlines and airport infrastructure. This strategic push aims to position India as a significant player in global air transport, potentially ranking just behind the United States and China in air traffic within a few years. The challenge remains for the country to keep pace with this explosive growth in air travel by ensuring that adequate infrastructure is developed to meet the increasing demand.