Aviation sector is striking for new pinnacle and the industry can reach upto 150 billion USD and would require about 1300 new aircrafts in the coming two decades to meet the needs of growing middle and rich class in India.

India registered 53,6 million domestic and 13,1 million international passengers during the last financial year and is estimated to reach an average growth of 8,1% yearly.

India has 125 airports including 11 international airports and dramatic increase in air traffic for both passengers and cargo in recent years has trivialised heavy strain on the country's major airports. Passenger traffic is projected to cross 100 million and cargo to cross 3,3 million tonnes by year 2015.

India is currently the ninth largest aviation market in the world and the Government of India open sky policy has attracted many foreign investors and the industry is growing in terms of both players and the number of aircrafts. Considering the strong market fundamentals, it is expected that the civil aviation market will register a compound annual growth rate (CAGR) of more than 16% during the period of 2012-2015.

The Government of India has taken various steps towards structural policy reforms and is coming out with new policies which are liberal and will encourage public-private partnerships (PPP).

100% foreign direct investment (FDI) are allowed via the automatic route for the greenfield airports.

Foreign investment up to 74% is permissible through direct approvals for non-scheduled and cargo airlines while special permissions are required for 100% investment.

Private investors are allowed to set up general airports and captive airstrips and complete tax exemption is also granted for 10 years.

FDI of 49% is allowed for investment in domestic scheduled passenger airlines and investment up to 100% by non-resident Indians (NRI) via the automatic route.

The tier-II and tier-III market is a vast untapped market for domestic airlines and the low cost carrier recently announced to enter into regional networks. The AAI has already mooted various proposals to increase connectivity across the smaller towns.

The Indian aviation sector is a major economic driver for prosperity, development and employment. Massive investments in airport infrastructure have led to world class airports which have become the symbol of India’s growth story.

The Vision 2020 announced by the Ministry of Civil Aviation conceives of building infrastructure to support more than 300 million consumers.