Domestic passengers to account for 63% of total growth by 2037

Domestic passengers will account for around 63 per cent of the total growth by 2037, or 228 million additional passengers, as per a recent ‘Project Rupee Raftaar’ report by the Ministry of Civil Aviation. Foreign passengers will contribute less to overall growth, representing 37 per cent of the total market growth, equal to 131 million additional passengers. Of the 6.1 per cent average annual growth in Indian air passenger demand over the next 20 years, improvements in living standards (via higher incomes) are expected to contribute the major share, at 5.1 percentage points. Favourable population and demographic factors are forecast to contribute 0.6 percentage points to annual growth. Other factors, mainly future technological gains, will contribute 0.8 percentage points per year.