By GS Bawa
On World Tourism Day, India reaffirms its role as a bridge between cultures, showcasing its diverse spiritual, historical, and natural treasures. Our rich heritage fosters understanding and harmony among global travellers. The Symbiotic Relationship between Tourism and Aviation; as India’s aviation market grows, tourism will flourish too with:
- Domestic airline capacity is projected to reach 230 million departing seats in 2024
- Regional connectivity enhancing economic development and cultural exchange
- International expansion by Indian carriers
Key Highlights:
– India’s aviation market to become the third largest by 2027
– UDAN scheme connecting 469 new routes and making 74 airports operational
– Sustainable tourism practices promoting peace, unity, and economic growth
Prime Minister Modi highlighted India’s ambitious plans to become a leading aviation hub by the end of this decade during the civil aviation conclave. He emphasized the significant transformation of the aviation industry over the past decade, pointing out the movement from exclusivity to increased accessibility.
I believe that Tourism cannot only be a means of entertainment but also a step towards empowerment through economic prosperity. It can become a strong means of creating employment for many people. Alongside multiple modes of tourism, a lot of work has also been done for heritage, Spiritual and medical tourism in India. India as a big nation has several sites that attract tourists, on a perpetual basis rather than single-visit travels.
With the above background I want to start an article on the growth potential of tourism and civil aviation for economic growth and development of India as a nation that the world shall recognize one day; permit me to tag it as “Unlocking India’s Growth Potential: Harnessing Tourism and Civil Aviation for Economic Prosperity of India and its partners.” Also due to the paucity of space, I will leave certain impressions as bullet items.
India as the world’s fastest-growing major economy, is poised to leverage its vast cultural, spiritual, and natural heritage to propel economic growth and development. Tourism is a vital sector with immense potential, it has already emerged as a key driver of economic empowerment, employment generation, and national pride. Beyond mere entertainment, tourism has the transformative power to foster cultural exchange, preserve heritage, and promote peace.
The Indian government’s proactive initiatives, such as the Swadesh Darshan Scheme, Heritage City Development and Augmentation Yojana (HRIDAY), and the Regional Connectivity Scheme (UDAN), have significantly boosted tourism infrastructure and accessibility. Concurrently, India’s civil aviation sector is experiencing unprecedented growth, with plans to establish 29 greenfield airports and expand existing ones, connecting remote regions to global destinations: numbers touching 350, over a period of time.
As we envision India’s ascent to a USD 5 trillion economy, the symbiotic relationship between tourism and civil aviation assumes paramount importance. This article explores the vast growth potential of these interlinked sectors, highlighting their role in Employment generation and skill development, Economic empowerment of local communities, Preservation and promotion of cultural heritage, regional development and connectivity, and National branding and global recognition. Against this backdrop, we will examine the policy initiatives, infrastructure developments, and innovative strategies that can catapult India’s tourism and civil aviation sectors to new heights, cementing the country’s position as a premier destination for travellers and investors alike.
India’s aviation sector is experiencing unprecedented growth, driven by the government’s ambitious plans to establish 29 greenfield airports across underserved regions. This strategic move aims to link smaller towns with global air routes, unlocking new economic opportunities and transforming the country’s aviation landscape.
The Big Picture
India’s airport infrastructure has expanded significantly since 2014, with the number of airports doubling from 74 to 148 in 2023. The target is to increase this number to 220 by 2030, and more recently, to 350 by 2047. The Airport Authority of India (AAI) plans to invest Rs. 25,000 crores in the next five years to support this growth.
Regional Connectivity
The new airports will focus on improving air connectivity to smaller cities and regions, enhancing regional growth and development. This ambitious plan aims to bridge the gap between tier-2 and tier-3 cities, linking them to major hubs and international destinations.
- State-wise Airport Development
- Gujarat will lead the list with nine airports, including greenfield projects in Rajkot, Bhavnagar, and Jamnagar.
- Karnataka will see six new airports, with focus on enhancing connectivity to coastal regions like Mangaluru and Hubballi.
- Madhya Pradesh and Jharkhand will each get five new airports, strengthening regional connectivity in central and eastern India.
- Other states, including Manipur, Meghalaya, Nagaland, Tripura, and Bihar, are also slated for airport development.
- Benefits of Enhanced Regional Connectivity
– Boosts economic growth by linking regional industries to global markets
– Increases tourism potential, creating jobs and revenue opportunities
– Enhances accessibility, reducing travel time and improving quality of life
– Fosters social connections, reunifying families and communities
UDAN Scheme
The Regional Connectivity Scheme (RCS) – Ude Desh Ka Aam Naagrik (UDAN) – aims to make air travel affordable and accessible to smaller towns. By subsidizing flights and caps on fares, UDAN has already connected 400 routes, benefiting over 1 million passengers.
Economic Growth
Moody’s has revised India’s growth forecast to 7.1% in 2024, driven by growth in the Asia-Pacific region and a strong post-pandemic rebound. The International Monetary Fund (IMF) and World Bank have also upgraded India’s GDP growth forecasts. India’s aviation sector is poised to drive economic growth, with the government’s airport expansion plans expected to:
- Boost GDP Contribution
- Aviation’s contribution to India’s GDP is projected to increase from 2% to 5% by 2047.
- The sector’s growth will create a ripple effect, stimulating economic activity in adjacent industries.
- Create Employment Opportunities_
- Direct employment: 2.5 million jobs in aviation and allied sectors by 2047.
- Indirect employment: 5 million jobs in tourism, hospitality, and other supporting industries.
- Increase Trade and Commerce_
- Enhanced air connectivity will increase trade volumes, benefiting India’s export-oriented industries.
- Easier access to global markets will attract foreign investment, fostering economic growth.
- Foreign Investment and Partnerships_
- India’s aviation sector has attracted significant foreign investment, with partnerships between Indian and international airlines.
- Private sector participation in airport development will introduce new technologies and management expertise.
- Growth Forecasts
- Moody’s has revised India’s growth forecast to 7.1% in 2024.
- The International Monetary Fund (IMF) and World Bank have also upgraded India’s GDP growth forecasts.
- Key Statistics
- – India’s aviation market is expected to become the third largest by 2027.
- – Air passenger traffic is projected to reach 1.1 billion by 2047.
- Expert Insights
- Mark Martin, founder and CEO of Martin Consulting, emphasizes the need for airport planning to be driven by passenger growth forecasts rather than political motivations. “Regional airports are crucial for economic growth, but planning must be demand-driven to ensure sustainability.”
Challenges and Opportunities
While the aviation boom presents numerous opportunities, challenges persist:
- Infrastructure Development: Building and upgrading airports, air traffic control systems, and navigation aids.
- Environmental Concerns: Managing noise pollution, emissions, and waste.
- Land Acquisition: Securing land for airport expansion and development.
- Skilled Workforce Development: Training and employing professionals in aviation management, maintenance, and operations.
Government’s Vision 2047
The recent announcement by Union Civil Aviation Minister Kinjarapu Rammohan Naidu to increase the number of airports to 350 by 2047 aligns with the government’s Vision 2047. This vision aims to transform India into a developed nation, with advanced infrastructure supporting economic and social aspirations.
In Summary
India’s aviation boom is set to transform the country’s economic landscape, making air travel more accessible and convenient for citizens. As the government continues to invest in airport infrastructure, regional connectivity will improve, driving economic growth and development.
Gurmukh Singh Bawa is the former General Manager, Airports Authority of India, Secretary General, the Air Travellers Association and Secretary Public Relations Society, Delhi. Currently, he writes on subjects like Airport Economics, Airport Statistics and Data Collection, Traffic Studies & Surveys and Traffic Forecasting, Commercial Aspects of Airports, Airport Marketing, Airport Non-Aero Enhancement Strategies, Corporate Communication, Organization Image Building, Public Relations, General Management, Motivation, Quality Control, Project Management, Training and Training Methodologies.
