India was the world’s fastest growing aviation market in 2015, expanding more than 20 percent, according to International Air Transport Association (IATA) in a December presentation, reports Bloomberg Business. The country’s air travel industry outpaced the 10 percent growth registered in China and 5 percent increase in the United States.
The local airline industry is reaping higher profits thanks to a sharp fall in oil prices, and this has boosted the value of shares in Indian-based airlines. “A sharp reduction in fuel prices remains a key trigger for margin expansion,” said Rashesh Shah and Devang Bhatt, analysts at ICICI Securities.
India is forecast to have almost 30 million outbound tourists by 2018, according to IGATE Research.
The Telegraph says India and China are among the fastest-growing markets for aircraft manufacturers Airbus and Boeing, which forecast that Asia will overtake the U.S. as the world’s biggest airplane market in two decades.