India has become the third-largest domestic aviation market in the world. The aviation industry in India includes domestic and international airlines, airport infrastructure, maintenance, repair and overhaul (MRO) services, and ground handling services. The industry plays a pivotal role in the country’s economy by providing connectivity and supporting tourism and trade.

Advantage India

India is uniquely positioned in the global aviation map. The country benefits from strong demand, policy support, competitive cost advantages, and investment opportunities. Key drivers include:

• A burgeoning middle class with rising disposable income
• Government initiatives such as the UDAN scheme to enhance regional connectivity
• A significant increase in passenger traffic
• Strategic investments in infrastructure and aircraft fleet expansion

Market Size

India’s passenger traffic reached 327 million in FY24. Domestic traffic stood at 274.24 million, and international traffic at 52.6 million. Aircraft movement at all Indian airports was 2.99 million, while cargo movement stood at 3.35 million tonnes in FY24.

By 2038, India is expected to require over 2,380 new commercial aircraft, with a forecast of handling over 1.1 billion passengers by 2040. Indian carriers are responding to this growth through massive aircraft orders and network expansion.

Key Investments and Developments

• In June 2023, IndiGo ordered 500 aircraft from Airbus — the largest single purchase agreement in aviation history.
• Air India placed orders for 470 aircraft from Airbus and Boeing in February 2023.
• GIFT City in Gujarat has become an emerging hub for aircraft leasing, with several firms registering.
• Airport Authority of India (AAI) aims to operationalize 100 more airports by 2024.
• The government has approved the development of multiple Greenfield Airports and allocated ₹3,113.36 crore for their construction.

Government Initiatives

The Government of India has undertaken several initiatives:

• 100% FDI allowed under automatic routes in certain segments
• UDAN Scheme to make air travel affordable and widespread
• Development of a cargo policy to promote air freight
• MRO policy reform to encourage local maintenance operations
• Plans for 21 new Greenfield airports approved, with eight operationalized as of April 2023

Road Ahead

India is forecasted to become the third-largest air passenger market by 2030. To accommodate growth, investments will continue in airport infrastructure, regional connectivity, MRO facilities, and cargo hubs. The government’s proactive approach and private sector participation are set to make India a global aviation hub.

For more information, visit the official page on Indian Aviation.