17 Mar 2016 13:07 IST

Domestic aviation market grew 20% in 2015: FICCI-KPMG report

Report released by Union Minister for Civil Aviation

With 81 million trips, India's domestic aviation market grew at 20.3 per cent during January - December 2015 compared to the same period last year, according to the FICCI-KPMG India Aviation Report.

The report, which was formally released by the Union Minister for Civil Aviation, P Ashok Gajapathi Raju on the second day of the India Aviation Show 2016 in Hyderabad on March 17, also predicted that India was on its way to becoming the third largest aviation market by 2020.

The drivers for this growth were increasing disposable incomes, fall in prices of aircraft turbine fuel, increase in tourism, visa reforms, etc.

The passenger traffic on international routes showed an increase of 6.5 per cent during 2015 compared to 2015. In comparison, the international passenger throughput at Indian airports grew at 7.7. per cent.

The national civil aviation policy, which is likely to be announced next month by the Government of India, is likely to provide "significant fillip to the industry," the report said.

Move to revive about 160 airports in India will improve air connectivity to regional and remote areas.

"The Public Private Partnerships in the sector will get substantial support from the state in terms of financing, concessional land allotment, tax holidays and other incentives,'' the report said.