Table of Contents
Why in News?
- The Ministry of Civil Aviation has unveiled the Vision 2040 document, which highlights the growth potential in different sub-sectors of Indian aviation and the key action steps are required to be taken to achieve the desired Indian Aviation objective.
Indian Aviation
- Increase in passenger traffic
- India is now the seventh largest aviation market
- Cargo Traffic in future.
- Indian Aviation is witnessing great switchover from Railways
- Manufacturing
Highlights of Vision 2040
- As per the document the total passenger traffic (to, from and within India) in India is expected to rise nearly six-fold from 187 million in FY 2018 to around 1124 million in FY 2040.
- This includes around 821 million domestic passengers and around 303 million international passengers (to and from India).
- The overall CAGR (compound annual growth rate) works out to around 9% in domestic and 7% in international traffic during FY 2018-2040.
Long-term plan
- Rather than having five-year plans, the document talks about India having a robust 20-year plan that lays out the targets and the path to get there along with time lines and clear accountability.
- High growth path
- Various Initiatives
Suggestions for policy reforms
- Nabh Nirman Fund (NNF)
- Changes in tax structure
- DGCA may be converted into a fullyindependent Civil Aviation Authority,
Challenges
- Infrastructure related problems
- Poor Financial Health of Indian Airlines
- Air Safety and Security is another challenge.
- Absence of Maintenance and Repair Organizations (MRO) in India.
- Not much improvement in Cargo Traffic
Way Forward
- Involvement of as many as agencies, possible, is required for building Infrastructure and thus boosting Aviation Sector.
- The Central Government and the State Governments should make a concerted effort, for this sector to grow at a good pace.
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