Budget 2024 update: Indian airlines placed orders for 1,000 new aircraft, says FM Sitharaman
Nirmala Sitharaman speech news: The Union Finance Minister said that the Central government will continue to work on expanding the network of new airports and adding new air routes.
- Feb 1, 2024,
- Updated Feb 1, 2024 12:44 PM IST
Interim Budget 2024: Union Finance Minister Nirmala Sitharaman on Thursday said while tabling the interim budget that Indian airlines have placed orders for 1,000 new aircraft since the aviation sector has seen an expansion due to the Modi government 2.0's policies.
She further said that the number of airports in India has doubled to 149 and 517 new air routes are carrying upto 1.3 crore passengers. Sitharaman added that the Central government will continue to work on expanding the network of new airports and adding new air routes.
"The aviation sector has been galvanised in the past ten years. Number of airports have doubled to 149. Roll out of air connectivity to tier-two and tier-three cities under UDAN 19 scheme has been widespread. Five hundred and seventeen new routes are carrying 1.3 crore passengers. Indian carriers have pro-actively placed orders for over 1000 new aircrafts. Expansion of existing airports and development of new airports will continue expeditiously," Sitharaman said.
Air India, now owned by the Tata Group, has placed orders for 470 aircraft-- 250 from Airbus and 220 from Boeing. Of the 220 planes Air India will purchase from Boeing, 190 will be B737 MAX, 20 B787 and 10 B777X.
The deal will also include options for an additional 50 Boeing 737 MAX and Boeing 787, totalling 290 planes for $45.9 billion at list price. India's leading low-cost carrier IndiGo, on the other hand, is buying 500 planes.
Besides this, Nirmala Sitharaman also said that the government will spend 11.10 per cent more on infrastructure, which is on par with India's nominal growth estimate. Sitharaman's remarks come as global industry experts are optimistic about India as a growing market in the aviation sector.
Joshua Ng, a director at Singapore-based Alton Aviation Consultancy told news agency PTI: "A lot of investment is required in India and FDI is flowing in", citing the progress of Singapore Airlines and Tata Group joint venture aimed at rebuilding Air India.
Alan Lim, Singapore-based aviation consultant, said that intra-city trips can be a big thing in India.
"India has a lot of congested cities and Urban Air Mobility (UAM) has the potential to succeed in those areas. Transportation demand is going to grow and intra-city trips are going to create sufficient demand to build a UAM market. Overall, it is a very exciting growth story for both traditional and new technologies in aviation," Lim said.
Boeing India President Salil Gupte said that India is one of the fastest growing civil aviation markets globallly and Indian airlines have placed orders for around 1,500 planes.
Commenting on Sitharaman's announcement regarding expansion of airports in India, Siddharth Tandon, Partner, Indirect Tax, BDO India said: “Expansion of existing airports and the development of new airports along with the extension of UDAAN scheme for regional connectivity would remain an area of key focus aiding tourism and development.”
Also Read: Budget 2024 LIVE Updates: No change in taxation. Farmers, women, youth & poor get more
Also Read: Budget 2024: Average real income up by 50%, inflation moderated, says Nirmala Sitharaman
Interim Budget 2024: Union Finance Minister Nirmala Sitharaman on Thursday said while tabling the interim budget that Indian airlines have placed orders for 1,000 new aircraft since the aviation sector has seen an expansion due to the Modi government 2.0's policies.
She further said that the number of airports in India has doubled to 149 and 517 new air routes are carrying upto 1.3 crore passengers. Sitharaman added that the Central government will continue to work on expanding the network of new airports and adding new air routes.
"The aviation sector has been galvanised in the past ten years. Number of airports have doubled to 149. Roll out of air connectivity to tier-two and tier-three cities under UDAN 19 scheme has been widespread. Five hundred and seventeen new routes are carrying 1.3 crore passengers. Indian carriers have pro-actively placed orders for over 1000 new aircrafts. Expansion of existing airports and development of new airports will continue expeditiously," Sitharaman said.
Air India, now owned by the Tata Group, has placed orders for 470 aircraft-- 250 from Airbus and 220 from Boeing. Of the 220 planes Air India will purchase from Boeing, 190 will be B737 MAX, 20 B787 and 10 B777X.
The deal will also include options for an additional 50 Boeing 737 MAX and Boeing 787, totalling 290 planes for $45.9 billion at list price. India's leading low-cost carrier IndiGo, on the other hand, is buying 500 planes.
Besides this, Nirmala Sitharaman also said that the government will spend 11.10 per cent more on infrastructure, which is on par with India's nominal growth estimate. Sitharaman's remarks come as global industry experts are optimistic about India as a growing market in the aviation sector.
Joshua Ng, a director at Singapore-based Alton Aviation Consultancy told news agency PTI: "A lot of investment is required in India and FDI is flowing in", citing the progress of Singapore Airlines and Tata Group joint venture aimed at rebuilding Air India.
Alan Lim, Singapore-based aviation consultant, said that intra-city trips can be a big thing in India.
"India has a lot of congested cities and Urban Air Mobility (UAM) has the potential to succeed in those areas. Transportation demand is going to grow and intra-city trips are going to create sufficient demand to build a UAM market. Overall, it is a very exciting growth story for both traditional and new technologies in aviation," Lim said.
Boeing India President Salil Gupte said that India is one of the fastest growing civil aviation markets globallly and Indian airlines have placed orders for around 1,500 planes.
Commenting on Sitharaman's announcement regarding expansion of airports in India, Siddharth Tandon, Partner, Indirect Tax, BDO India said: “Expansion of existing airports and the development of new airports along with the extension of UDAAN scheme for regional connectivity would remain an area of key focus aiding tourism and development.”
Also Read: Budget 2024 LIVE Updates: No change in taxation. Farmers, women, youth & poor get more
Also Read: Budget 2024: Average real income up by 50%, inflation moderated, says Nirmala Sitharaman