• The Ministry of Civil Aviation on January 15 unveiled the Vision 2040 document, which highlights the growth potential in different sub-sectors of Indian aviation and the key action steps are required to be taken to achieve the desired objective.
• As per the document the total passenger traffic (to, from and within India) in India is expected to rise nearly six-fold from 187 million in FY 2018 to around 1124 million in FY 2040.
• This includes around 821 million domestic passengers and around 303 million international passengers (to and from India).
Details about the vision document
• The overall CAGR works out to around 9% in domestic and 7% in international traffic during FY 2018-2040, it said adding that since aviation is a longterm plan, aircraft procurement, airport development, air navigation system changes and skill development should be done in a cohesive manner.
• Rather than having five-year plans, the document talks about India having a robust 20-year plan that lays out the targets and the path to get there along with time lines and clear accountability.
• The technology developments like artificial intelligence, machine learning, blockchain, biometrics, composites, super-alloys, biofuels etc. are changing the face of aviation and it is humanly impossible to predict the oil price or the exchange rate a month down the line, much less the impact of technology 10 years hence.
• The vision document said with the right policies and a relentless focus on execution, India can surprise the world by not just meeting but exceeding the Vision 2040 targets.
• “India is the seventh-largest country by area and the second-most populous with over 1.35 billion people. It’s one of the fastest growing economies of the world and likely to become the fifth largest in 2019.
• The Indian aviation market is on a high growth path. Total passenger traffic to, from and within India, during Apr-Nov 2018 grew by around 15% year on year as compared to around 6% globally.
• India is now the seventh largest aviation market with 187 million passengers (to, from and within India) in FY2017-18,” it added. It is expected to be third largest by 2022, it said.
• As per the document initiatives like Nabh Nirman (for airport capacity augmentation), Digi Yatra (for paperless travel) and AirSewa (for online passenger grievance redressal) are bringing in radical changes.
• The tax structure for Aviation Turbine Fuel (ATF), Maintenance, Repair and Overhaul (MRO) and aircraft leasing may be gradually aligned with leading global jurisdictions.
• It said that the government may consider establishing a Nabh Nirman Fund (NNF) with a starting corpus of around $2 billion to support low traffic airports in their initial phases.
• The concept of land pooling may be used to keep land acquisition costs low and to provide landowners with high value developed plots in the vicinity of the airport.
• It also said DGCA may be converted into a fully-independent Civil Aviation Authority, with its own sources of funding and freedom to recruit professionals at market-linked salaries.
• Most transactions with DGCA will be automated with minimal human interface.
Mains Paper 2: Governance
Prelims level: Vision 2040 document
Mains level: Details about the Vision 2040 document