Dallas: According to a leading global consultancy, the Indian aerospace industry has experienced significant growth during the last five years and is expected to reach $23.5 billion by 2016. It says growth will be boosted by an increase in disposable income of the country's citizens and the subsequent increase in air travel.
According to Lucintel, a leading global management consulting and market research firm, India's domestic passenger growth is expected to reach a level of 150-180 million passengers by the year 2020.
The introduction of the defence offset policy in 2006 and significant liberalization in 2008 has also provided significant opportunities for Indian companies entering the sector.
Lucintel has analysed the Indian aerospace and MRO market and just published a comprehensive research report, ''Opportunities in Indian aerospace and MRO market: 2011-2016''.
As per the study, increases in fleet size, low labour cost and government support to the industry are the major factors driving the Indian MRO market. The Indian MRO market is expected to reach $1.8 billion by 2016. However there are some challenges in front of Indian MRO players which should be addressed quickly, including infrastructure development and technological advancements.
The study points out that India is a promising market for global MRO companies because the Indian aviation industry has high passenger traffic, low cost airlines and an increasing numbers of aircraft. Currently, there are no full MRO service facilities within a five-hour flight of India.
The commercial aircraft market is expected to demonstrate strong, positive growth. The demand for business jets will grow with economy, which is poised for robust growth; consequently the business jets market will grow significantly.
Additionally, Lucintel estimates that the defence sector will grow with a CAGR of 15% over the next five years.