New Delhi, Sep 3 (IANS): Travel industry body International Air Transport Association (IATA) Wednesday said India’s domestic market increased by six percent in July over the previous year.

"This could be an early sign of the success of the new government’s business-friendly stance. However, the government’s July budget announcement showed little spending stimulus which could keep India’s growth trend below the pace of other emerging markets," IATA said in a statement.

According to data furnished by the civil aviation ministry, domestic air passenger traffic increased by 7.19 percent in July to 52.16 lakh passengers - up from 48.66 lakh ferried in the corresponding month last year.

On a month-on-month basis, there was an increase of around five percent in the passenger traffic.

"Passengers carried by domestic airlines during January-July 2014 were 376.28 lakh as against 358.80 lakh during the corresponding period of previous year thereby registering a growth of 4.87 percent," the ministry had said.

The data showed that low cost carrier IndiGo achieved the highest market share at 30.7 percent followed by SpiceJet at 20.9 percent, Jet Airways at 19.6 percent and Air India's domestic operations at 18 percent.

Regional carriers AirAsia India reported a market share of 0.05 percent and Air Costa at 1.1 percent.