New Delhi, Aug 28 (IANS) To maintain its record growth of 20 percent in 2005, the Indian aviation sector would need 856 commercial planes with an estimated investment of $72 billion in the next 20 years, says a Boeing study.
The study, Current Market Outlook (CMO), was released here Monday.
'The forecast is based on the increase in demand for domestic and international air travel and also the growth in the cargo market of India,' said Dinesh Keskar, senior vice-president (sales) for south and southeast Asia of the Boeing Commercial Airplanes.
He said the airlines would need to invest in airplanes to meet the demand for point-to-point travel within the country.
The market report found that the growth of the Indian aviation sector was fuelled by the economic development that has led to better purchasing power, he said.
Keskar added that as the passenger traffic in the country increases, a large number of passengers would demand point-to-point non-stop flights.
'India's progression from a regulated to liberalised market has dramatically increased the competition among the airlines forcing them to operate at higher level of efficiency,' he said.
Keskar added that seeing the growing market, India's national carrier Air India had recently ordered for 68 new planes to revolutionise the way Indians travel.
He said the Indian Air Force (IAS) was among its buyers along with private airliners like Air Sahara and Jet Airways that had placed orders for better planes.
Keskar said the boom in the aviation industry would not be limited to the passenger travel but would also be noticed in the airfreight market.
'India's exports are growing at an estimated rate of 5-6 percent and this would continue for the next 20 years,' he said, adding that the airfreight category in the country had not been tapped to its potential.