Morgan Stanley Report Says Indian Aviation Sector Likely to get Investments Worth $25 Billion in the Next Decade

A report published by Morgan Stanley said that India was likely to receive investments worth $25 billion in the coming decade. A huge demand of aeroplanes will be required to serve the passengers and the sector could also witness impressive growth as India is now the third largest domestic air travel market. 
 
The report further said, “India's domestic air passenger traffic reached 100 million in 2016, behind only that of the US (719 million) and China (436 million) and ahead of Japan (97 million). We forecast a 13% domestic air traffic compounded annual growth rate (CAGR) 2016-26, the highest such rate of any key region globally and higher than India's 11% CAGR 2011-16,” stated the Morgan Stanley report shared by a leading business daily.
 
The UDAN (Ude Desh ka Aam Naagrik) scheme has been recently launched by the government to facilitate affordable domestic air travel. It has also enabled the participation of the private sector and state governments in India's growing aviation sector.
 
The report lauded government’s efforts to increase air connectivity and also stated that the share of air travel in air and rail travel together in India will rise to 15.2% by 2027 from 7.9% now.