India’s growth challenge

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Building institutional capacity

The growth of aviation in India is a well-known story, driven by demand from India's growing middle class. The recent deregulation of airlines and introduction of competition in airports has had a profound, positive effect on the sector's ability to attract the investment to meet the demand.

However, one outcome is that bottlenecks emerge between supply and demand, and the development of the private and public sectors becomes unbalanced. For the last three years, Helios has been working on an EU project that seeks to mitigate these constraints to achieving sustainable economic growth.

Our team (in cooperation with lead partner Human Dynamics) is therefore helping the Indian Ministry of Civil Aviation to strengthen their capacity to set regulations and oversee safety. Three of Helios' senior consultants are working on-site with the Directorate General of Civil Aviation (DGCA) and Airports Authority of India to enable changes that will bring India's organisations into line with ICAO's latest standards.

A key objective is to define and implement the Indian State Safety Programme, a government policy document setting out the institutional goals and structure for ensuring aviation safety. Effective risk identification and control is at the core of this programme, and our experts have therefore been addressing all elements of safety management. Activities include coaching DGCA staff, raising awareness amongst the stakeholders, and joining the DGCA for safety oversight visits to organisations. To date, we have trained over 100 companies from airlines, maintenance organisations, airports and the Air Navigation Service Provider.

Helios' expertise has also been beneficial in the definition of a new Civil Aviation Authority and the establishment of an Aircraft Accident Investigation Bureau.

We expect to spend the next two years in India supporting further sustainable improvements in the government institutions and working alongside all stakeholders there to improve safety and performance, in light of the continuing growth in the aviation sector. For further information contact Ben Stanley.

India's 12th Five-Year Plan

In the 12th plan (2012-17), domestic passenger throughput is forecast to grow at an average annual rate of around 14.5% between FY-12 and FY-17, hitting 209 million by FY-17 from 106 million in FY-11. Similarly, international passenger throughput is estimated to grow at an average annual rate of 9.6% during the same period to reach 60 million passengers by FY-17 from 38 million in FY-11. Overall, total traffic is expected to jump to 269 million passengers by FY-17.

  • Indian airports are expected to handle 274 million passengers.
  • New airports are expected to handle 38 million passengers.
  • An estimated $7.7 bn investment will be required for airport infrastructure development.
  • Passenger terminal capacity is expected to touch 370 million across all airports as per the investment plans of the operators.

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