Indian aviation is likely to grow from strength to strength in the next few years, predicts a report compiled by Center For Asia Pacific Aviation (CAPA). The International traffic is expected to achieve a growth rate of 9.9% over the next ten years till 2021 to reach 96 million passengers.
The report said that the domestic passenger traffic is likely to grow even faster at 13% annually to hit 356 million by 2021. If aviation grows at the predicted rate, India would become the third largest aviation market in the world, behind only the USA and China
"The Indian aviation sector is facing some short term challenges at present, however the underlying fundamentals remain strong," the report says.
This positive growth in the number of passengers will also augur well of the retail expansion at most Indian airports. The report said that current spending levels at Indian airports are low by international standards, and more inflow of passengers would help revenue from retail pick up in a big way.
"Indian travelers are still warming up to the concept of buying at airports. With more passengers, the level and the rate of purchase would go high. Also, airport like Mumbai, which is still constructing a second terminal, will fetch a lot of retail revenue once the new terminal opens up," an aviation analysts said.
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