Question

How aviation industry contributes in GDP of the country? Discuss in detail. (Word Count: 500-600) words

Answer 1

This assessment will explain how the aviation industry contributes to the GDP of the country:

the aviation industry or the airlines contribute in numerous ways to watch the economic development and GDP of any country worldwide.

Aviation industries help the world connect in a unique manner and at an immense amount to their GDP and economy.

All around the world, the aviation industry contributes to about 2.7 trillion dollars.

From that, aviation industries contribute to the GDP of any country directly, indirectly, through induced GDP and tourism for any economy.

The aviation industry contributes to around 704.4 billion dollars directly to the world's GDP by carrying over 4 million passengers year all over the world and nearly 62 million tonnes for the freight.

Furthermore, aviation industries are more substantial than both the pharmaceutical manufacturing and automobile manufacturing sectors by the GDP.

Now coming towards the indirect GDP contribution in the world economy, aviation industries contact due to about 637.8 billion dollars indirectly.

This indirect contribution of GDP includes aviation fuel suppliers and sub-components used in the aircraft, construction companies, and manufacturers of the products sold on the airport premises and other business services like call centers, accountancy, and IT.

These all contribute to indirect GDP by the aviation industry.

Now moving towards the aviation industry's induced GDP, then it is 454 billion dollars for the whole world.

Here, induced GDP includes a contribution by providing income to the employees in the aviation industry.

Spending by directly and indirectly employed people in the aviation sector helps support jobs in the retail and manufacturing and hospitality and banking sectors.

The aviation industry also contributes to tourism a lot. It contributes to about 896.9 billion dollars in the economic development of the world.

We all know that tourism is on the verge of becoming the world's largest industry, and the aviation industry supports a lot to tourism as tourism is dependent upon the aviation industry to a considerable extent.

The aviation and airport industries provide a lot of economic benefits to the world and help develop and improve the GDP of various countries.

Apart from the above-given points, the aviation industry also contributes to developing the transportation network worldwide that provides to the global business and acts as the right hand of the globalization.

In developing countries, in particular, this industry contributes a lot because any development industry depends mainly upon the export-import of products from one place to another to improve their economic condition.

Such export and import from one country to another would not be possible in the absence of aviation or air transport industry.

Furthermore, 40% of the total international tourists now prefer to travel by air, and air transport is the only source of traveling through air.

The aviation industry contributes a lot to create jobs all over the world.

Aviation industry contributes to creating about 29 million jobs around the globe, which includes 5 million direct jobs, 5.8 million indirect jobs, 2.7 million induced jobs, and 15.5 million direct and indirect jobs through catalytic impact via tourism.

Thus, these are how the aviation industry is providing vital economic benefits to the world and contributing to the economic growth and overall GDP of the world's economy.