The aviation industry is set to double its contribution to the country’s gross domestic product (GDP) over the next five years as economic growth and rising disposable incomes encourage Indians to spend more on travel as per a report in the Economic Times.

“With a potential $80-100 billion investment opportunity, aviation industry’s contribution to GDP may double in the next 5-7 years," said Amber Dubey, director (aerospace and defence) at global consultancy firm KPMG . 

Experts say growth of the aviation industry is crucial for the economic growth as it has a multiplier effect on jobs creation. 

India is expected to invest $14 billion in 300-350 new aircraft over the next five years, according to Dinesh Keskar, president of Boeing India . Boeing is the world’s largest manufacturer of commercial jetliners.

"According to an industry thumb-rule , 250-300 employees are required per aircraft,” said Manish Chedda, managing director of consultancy firm Auctus Advisors. “If that many aircraft are going to come to India, you can simply multiply and see the number of jobs that the industry will add. Then there will be outsourced jobs in catering, ground handling and related areas. The multiplier effect is just too obvious." 

The New Year is expected to see high passenger growth of over 15%. But the growth potential can be fully realised only if the industry manages its costs well. 

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