India’s aviation sector to invest $170b by ’30

India’s aviation sector is set to invest over $170 billion by 2030 to support the surge in aircraft orders and expand airport capacity, according to a report by S&P Global Ratings.

Government data suggests domestic passenger traffic is expected to double by 2030, reaching 300 million and international flights likely to increase significantly.

Indian airlines have placed record orders with Airbus and Boeing, and the government aims to double the number of airports by 2030 to establish global aviation hubs. S&P Global Ratings predicts that Indian carriers will spend $150 billion on aircraft orders and $24 billion on airport infrastructure.

S&P Global analysts believe it is a good time to increase borrowing in the aviation sector. Factors such as growing passenger air traffic, lower domestic financing rates, and favourable government policies on foreign ownership are expected to improve funding opportunities.

Airlines and airports are likely to increase their borrowings, but they may also turn to aircraft lessors and domestic banks to alleviate the financial strain.

Attribution: Reuters

Subediting: M. S. Salama