New Delhi, Dec 19 (IANS) Global aerospace major Boeing expects a demand for 2,300 new aircraft in India, valued at $320 billion, over the next 20 years.

According to the company's 2018 Commercial Market Outlook (CMO) for India, factors such as rise in GDP output along with increase in infrastructure spend and growth of low-cost carriers will lead to the fulfilment of the demand forecast.

However, the outlook cited the volatile exchange rate, high fuel price and low fare yields as challenges faced by the domestic industry.

--IANS rv/mag/sed