Thiruvananthapuram, Feb 12 (IANS) Prime Minister Manmohan Singh Saturday said India's civil aviation sector has witnessed unprecedented growth in the recent past and will soon have the potential to absorb investment of over $120 billion.

"I am told the projected growth of India's aviation sector has a potential to absorb investment of over $120 billion with attendant job creation for lakhs of workers directly and indirectly," Singh said at the inaugural function of the new terminal at the Thiruvananthapuram international airport.

"The government fully understands the importance of the civil aviation sector to the Indian economy, particularly as it gets more and more integrated into the global economy," the prime minister said.

"The ministry of civil aviation and the Airports Authority of India have commenced the development and modernisation of existing airports on a mission mode to create world class air infrastructure in our country," he said.

Singh said: "Air transport in India has witnessed unprecedented growth in the recent past. During the last seven years, domestic air traffic has tripled and international traffic more than doubled. An exponential growth in passenger traffic is expected in this decade as well."

The prime minister added that it is noteworthy the entire Rs.289 crore investment for the new international terminal building here was being met through internal resources of the Airports Authority of India.

The new terminal is a three-storeyed fully air-conditioned facility with a floor area of 20,000 sq metres. It is tubular in design and offers wi-fi connectivity to passengers.

This new terminal will now be open to international traffic as the domestic operations will continue at the old terminal.