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The aviation sector in India is amongst the most promising ones, driven by a massive boom in tourism and increasing levels of disposable incomes. The liberalisation of the sector in the mid-nineties has resulted in a remarkable growth as a large number of private service airlines entered the sector. Strong government support and private participation, coupled with the availability of skilled manpower, and favourable business environment have positioned India as an attractive investment destination on the world map.
Recording the strongest growth in the world, India's domestic aviation market has tripled in the past five years, according to a latest report of the International Air Transport Association (IATA).
India is currently the ninth largest aviation market in the world, according to a report “Indian Aerospace Industry Analysis”

The government's open sky policy has attracted many foreign players to enter the market and the industry is growing in terms of both players and the number of aircrafts. Given the strong market fundamentals, it is expected that the civil aviation market will register more than 16 per cent CAGR during 2010-2013.
The Aviation industry in India encompasses a wide range of services related to air transport such as passenger and cargo airlines, unscheduled service operators --- private jets and helicopters, airport management, and support services like Maintenance, Repairs and Overhaul (MRO), ground handling, in-flight catering, and training.

The Aviation sector has reaped massive benefit from the entry of private carriers, especially from those of the low fare ones. The growth of the airlines sector has caused a sharp upturn in demand for allied services including MRO, ground handling, and catering services. The booming aviation industry, along with its tertiary services, has wreaked a major talent crunch, boosting opportunities for training service providers. The ever-expanding Indian economy and increased demand for trade has pushed the need for air cargo services to a new high. Increasing number of entrants in the sector has forced airports to expand their cargo handling capacities.

The decelerating profit margin does not entail a slump in revenue generation. It is the increasing costs that have thrown the aviation industry into the present plight. India’s aviation sector stands up to the crisis and races against its fastest growing global competitors. Improved affordability and connectivity add to the expected improvement in both passengers and cargo traffic. Large public and private investments in air travel infrastructure, supported by government initiatives, are expected to pour in.
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