Aviation
Introduction
India is the third largest domestic aviation market in the world and is expected to overtake UK to become the third largest air passenger market by 2024. The sector has witnessed reforms such as Open Sky policy, implementation of GST, FDI liberalization, and privatization of airports.
India's domestic aviation market is poised to become the world's largest by 2030. The country is expected to have 220 million air passengers by 2025 and 400 million passengers by 2035.
Market Potential
India has 464 airports and airstrips. It has 125 airports, including 24 international airports, 87 domestic airports, and 14 other airports.
By FY40, India is expected to have 190-200 operational airports compared to 125 currently. India is expected to have an aircraft fleet size of more than 1,200 by 2027.
The regional connectivity scheme UDAN (UdeDesh Ka AamNagrik) aims to make air travel affordable and widespread, to boost inclusive national economic development, job growth and air transport infrastructure development.
FDI Policy
100% FDI is allowed under automatic route in Greenfield airport projects, subject to applicable laws and regulations.
- 100% FDI allowed in scheduled and non-scheduled air transport services (Domestic airlines)
- 49% FDI allowed in scheduled and non-scheduled air transport services (International airlines)
- 100% FDI in maintenance and repair organizations, flying training institutes, and technical training institutions
Government Support
The Government of India has been working on several initiatives to develop the aviation sector:
- National Civil Aviation Policy 2016 aims to create an ecosystem to facilitate affordable, efficient, and sustainable air travel
- UDAN scheme to boost regional connectivity across India
- Development of Greenfield airports and expansion of existing airports
- Maintenance, Repair and Overhaul (MRO) hubs being developed
- Privatization of airports to improve efficiency and infrastructure
Future Outlook
India's civil aviation market is expected to become the third largest by 2024 and the largest by 2030, supported by strong economic growth, rising middle class, and government initiatives.
The Indian MRO market is expected to reach US$ 4 billion by 2030. Airport infrastructure investments are expected to reach US$ 40 billion by 2030.
Ready to take flight in India's aviation sector?
Explore opportunities in airports, airlines, MRO, and aviation services.
Contact Us