Air transport plays a pivotal role in contributing to the Indian economy in various ways. Let's delve into the statistics highlighting its key contributions:
1. Employment Generation
Indian aviation alone contributes an impressive five percent to the country's GDP*, creating four million jobs. India’s Aviation industry directly and indirectly employs many people, including airline staff, ground handling personnel, airport staff, maintenance crews, air traffic controllers, security personnel, and various other support services. Additionally, the sector generates employment opportunities in related industries such as tourism, hospitality, and logistics.
Airlines, airport operators, airport on-site enterprises (restaurants and retail), aircraft manufacturers, and air navigation service providers employ approximately 404,000 people in India. An additional 943,000 jobs are supported by buying goods from local suppliers.
According to the Ministry of Civil Aviation (MoCA), the sector will likely employ one lakh more people by 2024, increasing direct employment from 2.5 lakhs to 3.5 lakhs.
2. Boost to Tourism
Air transport plays a pivotal role in promoting tourism in India and overseas by facilitating quick and efficient travel to various destinations across the country. Tourism, in turn, contributes significantly to the Indian economy through foreign exchange earnings, hospitality revenues, and the creation of jobs. Foreign tourists arriving by air in India, and spending their money, are estimated to support an additional 4.3 million jobs.
Promoting the tourism industry also helps the economy and employment sector domestically and internationally. A 34.3 per cent growth was reported, registering a growth of 34.3 per cent from 2021.
3. Trade and Commerce
Air transport facilitates the movement of goods, high-value perishable items, and time-sensitive cargo, supporting trade and commerce in India and overseas. Businesses benefit from enhanced connectivity, reaching distant markets, expanding supply chains, and maintaining a competitive edge.
4. Foreign Investment and Business
A well-developed aviation sector enhances India's economic opportunities for foreign investors and businesses. International companies are encouraged to establish operations in India due to its efficient air transport system, which leads to increased foreign direct investment (FDI) and economic growth.
5. Connectivity
Air transport promotes regional connectivity, linking smaller towns and remote areas to major cities and international destinations. This fosters economic development in previously isolated regions, encouraging investments, tourism, and job opportunities. India now has around 140 airports, a significant increase from the 74 airports in 2013-2014, and is projected to reach 220 airports by 2024-2025.
6. Infrastructure Development
The growth of the aviation sector leads to the necessity of developing airports and associated infrastructure. This, in turn, boosts the construction industry, creating jobs and opportunities in developing and maintaining airports, runways, terminals, and other aviation-related infrastructure.
7. Contribution to GDP
The direct and indirect economic tasks related to air transport collectively contribute five percent of India's Gross Domestic Product (GDP). A thriving aviation sector positively impacts the overall economic performance of the country.
Overall, the points mentioned above clearly demonstrate the significant impact of air transport on the Indian economy. It is essential to note that the exact contribution of air transport to the Indian economy may vary over time and be influenced by factors such as government policies, global economic conditions, and the overall performance of the aviation industry. While challenges persist, air transport remains a catalyst for economic development, job creation, tourism promotion, and technological innovation in India.
Source* https://bit.ly/3P6Ubzr
