"Robust growth with new economic prosperity amongst a massive Indian population, discretionary incomes, business progress and access to airports will increase airplane demand,” reports Boeing India President Dinesh Keskar.

"In 2011, the economy continues to do well. Indian air carriers are becoming profitable and we expect the GDP to maintain its upward trend in the long-term. As a result, both the air travel and air cargo markets will grow.”

Keskar also says airline revenue and yields were up, but high inflation and volatile fuel prices will play a pivotal role in the health of the industry.

Passenger traffic, which has reached 53.6 million domestic (fiscal 2011) and 13.1 million international, is expected to grow at 8.1% annually over the long-term.

“The economic and air-traffic growth will in turn stimulate demand for a variety of aircraft types,” Keskar says. “The need is great for new airplanes that can efficiently and profitably fly short and long-haul routes. This demand is driven by growth in developing and emerging cities, demand from low-cost carriers and the need to replace an aging fleet.”

The biggest demand will be for single-aisle aircraft.

Boeing aircraft currently dominate India’s long-haul international fleet, with 777s and 747s in service, soon to be joined by the 787 Dreamliner.

India’s airlines have been growing rapidly by taking advantage of geography, demographics, airplane technology and well-coordinated growth and investment plans. Some carriers, like Air India also are looking for replacement aircraft as they retire aging and less-efficient jets. Boeing predicts that India-based airlines will also grow by responding to passenger preference for more flight choices, lower fares and direct access to a wider range of destinations. Air carriers will focus on offering more flights using more efficient aircraft, instead of significantly larger airplanes.

Boeing in India

Boeing has expanded its footprint in India both in the civil aviation and defense market. The Boeing India corporate office is located in Delhi and the company has a Research and Technology centre in Bengaluru for research in aerostructures, materials and network systems.

Boeing is also partnering with Indian manufacturers to build a supply chain out of India.