Aircraft Deal for India

Why in News?

  • Recently, Air India has announced two major deals worth around USD 100 billion to buy 470 passenger planes from top aircraft manufacturers Airbus (with France) and Boeing (with United States).


  • The deal reflects India’s aspirations to be a world leader in the aviation sector, which is projected to require over 2,000 aircraft in the next 15 years.
  • This is the first aircraft order Air India has placed in 17 years and the first A350 aircraft will be delivered to Air India by the end of 2023.
  • The deal Is expected to make India the third-largest player in the aviation sector and create new opportunities in aerospace manufacturing under India’s ‘Make in India-Make for the World’ vision.
  • India’s Civil Aviation is among the fastest-growing aviation markets globally and will be a major growth engine to make India a USD 5 trillion economy by 2024.
  • The nation’s aeroplane fleet Is projected to quadruple in size to approximately 2500 aeroplanes by 2038.
  • The Indian aviation sector can benefit from the use of modern technology to enhance efficiency and passenger experience.
  • This includes the use of artificial intelligence, robotics, and big data analytics to improve operations, reduce costs, and enhance safety.
  • The Indian aviation sector needs to adopt sustainable practices, including the use of alternative fuels and reducing carbon emissions, to mitigate the impact of aviation on the environment.
  • The Indian government needs to encourage the development of regional airports to enhance connectivity to remote areas of the country.
  • This would require developing a regional air transport network and incentivizing airlines to operate in these areas
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