Swot Analysis Of Indian Aviation Industry

7INDUSTRY PROFILE AND COMPANY PROFILE

2.1 Industry Profile

The Indian Aerospace Industry is witnessing an unprecedented growth. Hindustan Aeronautics Limited (HAL), which is fully owned by the Government of India, is the premier aerospace company in the country. HAL has played a major role in the Defence Aviation of India through design, manufacture and overhaul of fighters, trainers, helicopters, transport aircraft, engines, avionics and system equipment. HAL is now ranked 34th in the list of world’s top 100 defence companies. HAL is a major partner for the Space programmers of India Space Research Organisation (ISRO) and manufactures structures and assemblies for the vehicles and satellite at its dedicated Aerospace Division in Bangalore.

Aircraft overhaul, rebuilding and parts are also included. The aviation industry in India includes state owned entities and also number of private players. The ministry of civil aviation governs the aviation industry.

Hindustan Aeronautics ranked 34th among the global league of top 50 aerospace companies moving up since last year’s rank of 45. In 2004-2005, the India share of the global aviation industry was US$36 Billion. Aviation industry in India is one of the fastest growing aviation industries in the world, with the liberalization of the Indian aviation sector aviation industry in India has undergone a rapid transformation. From being primarily a government owned industry, the Indian aviation industry is now dominated by privately owned will service airlines and low cost carriers.

Aviation industry supplies services to:

• Indian Defence Service

• Cost Guards

• Boarder Security Forces

Transport aircraft and fighter aircraft has also been supplied to state government of India and others

The market already has about 150 million travellers passing through its airports, with the capacity to grow further. By 2020, traffic at Indian airports is projected to touch 450 million. Furthermore, India’s aviation industry supports about 0.5 percent of the Indian GDP and close to 1.7 million high productivity is nearly 10 times greater than the Indian average.

Market size the industry

India is one the fastest growing aviation markets and currently the ninth largest civil aviation market in the world, according to Mr. KN Shrivastava, India Civil Aviation Secretary. The sector is projected to be the third largest aviation market globally by 2020.

Currently, India’s aviation market caters to 117 million domestic and 43 million international passengers. Over the next decade that market could reach 337 million domestic and 84 million international passengers.

Air transport (including air freight) in the country attracted foreign direct investment (FDI) worth US$ 456.84 million in the period April 2000-July 2014, according to data released by Department of Industrial Policy and Promotion