Air transport in India is gaining momentum and the focus on infrastructure by the present government augurs well for the aviation market in India. DSIJ Research Team comes up with the latest updates on the sector.
Airline stocks are once again in the focus after the Government of India (GOI) announced this week that India aims to build 100 more airports in 15 years. The mega plan to develop 100 new airports will need a whopping ₹4 lakh crore in terms of investments. Out of the 100 new airports, almost 70 airports are planned to be opened at new locations. This ambitious plan to expand connectivity and meet potential demand by establishing about 100 airports will double the current number of airports in coming 15 years. This development augurs well for the airline industry and the airline stocks can only benefit in the long run from such kind of massive investment plan by the GOI.
Indian domestic aviation market is going through a phase of healthy growth rate, majorly driven by the changing social-economic profile of the Indian consumers due to increasing income levels. What is interesting to note here is that this healthy growth is seen amidst low level of air travel penetration in India.
AVIATION MARKET IN INDIA:-
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