With Indian companies expanding its footprints across geographies and the number of billionaires increasing, the country's business jet market is set to nearly double in the next five years, a report by global consulting firm PriceWaterhouseCoopers (PwC) has said.
The report was commissioned by the Federation of Indian Chambers of Commerce and Industry (FICCI).
A growing economy, rising revenues of domestic companies, increasing number of high-net-worth individuals, poor connectivity to smaller towns in the hinterland and the need to save time and increase productivity are likely to drive growth in the segment, the report said. "The domestic general aviation market is on the threshold of catapulting itself into the global arena. It is expected to grow at 10% per annum to cross $4.5 billion by 2016-17. It is estimated that around 120 business jets, 150 small aircraft and 180 helicopters will be added by 2016-17."
In 2012, India became the second-largest business jet market in the Asia-Pacific region, after China's 220, with a fleet of 165 (up from 26 in 2005).
However, the domestic general aviation market is small and under-developed compared to its global peers, with a meagre 15% of the total aircraft movement, the report said.
Compared to the US, which has the largest number of general aviation planes at around 2,55,000 operating from across 5,110 airports, India has only 150 active airports and around 700 such planes. "However, India is an emerging market for private jets with rising economic growth, expanding business interests and rising number of billionaires," the report said.