India's Aviation Boom Poised to Become Global Airliner Power

Post by : Meena Rani

India’s civil aviation sector is soaring as one of the fastest-growing markets globally. Currently the third-largest domestic aviation market, India is projected to become the third-largest air passenger market worldwide by 2025, contributing 5% to national GDP. Aviation is also a major driver for tourism, cargo movement, and regional connectivity.

The growth story is visible in numbers. India’s airports with scheduled flights are set to rise to 220 by 2025, compared to 140 in 2022. In 2024 alone, over 161.3 million domestic passengers traveled by air, marking a 6.12% increase from the previous year. With a fleet of around 750 aircraft today, India’s airliners are expected to more than double in the next five years, with IndiGo commanding 61% of the domestic market, alongside Air India, Akasa Air, and SpiceJet.

India’s aviation growth aligns with global trends. Boeing has delivered over 20,000 jetliners, Airbus over 13,500, while China has introduced the COMAC C919 and announced the wide-body C929. Globally, Airbus forecasts a demand of 40,850 new aircraft over the next 20 years, highlighting a huge growth potential for India.

Building India’s Aviation Ecosystem

India is gradually expanding its aircraft manufacturing ecosystem. HAL produces the HS-748 ‘Avro’ and Dornier D-228, while the National Aeronautics Laboratory (NAL) is developing the Saras small transport aircraft. The Tata Group, in collaboration with GE, is producing C-130J components, CFM LEAP engine parts, and 40 CASA C-295 MW aircraft in Baroda, achieving 96% indigenous content. The first Made-in-India aircraft is expected by September 2026, with full deliveries by 2031.

In regional jets, India aims to develop a 90-seater Indian Regional Jet (IRJ), with a first flight targeted around 2026. This positions India to eventually build short-haul ATR-class and single-aisle jets, comparable to Boeing 737 and Airbus A320, reducing reliance on imports and strengthening domestic manufacturing.

MRO: A Booming Opportunity

India’s Maintenance, Repair, and Overhaul (MRO) market is another high-growth area. Valued at $1.7 billion in 2021, it is expected to reach $4 billion by 2031, growing at an 8.9% CAGR, faster than global averages. Government incentives like GST reduction (18% to 5%), extended land lease policies, and removal of royalty charges are making India an attractive destination for MRO operations.

Key facilities are already expanding in Delhi, Bengaluru, Noida, Belegavi, Bhopal, and Tirupati, with major players including AIESL, Air Works India, GMR Aero Technic, HAL, and Airbus. India aims to become a regional MRO hub, comparable to Singapore, serving both domestic and international aircraft fleets.

Challenges and Strategic Steps

Despite rapid growth, India faces gaps in original aircraft design, interiors, avionics, and aero-engines. The country imports most components, from seats to galley equipment, despite having a strong manufacturing base. To address this, experts suggest:

• Setting up a civil aviation development authority under PMO, similar to the Defense ADA.

• Establishing joint ventures with foreign OEMs with technology transfer for engines and aircraft.

• Creating a Positive Indigenization List (PIL) to boost domestic production of seats, interiors, and avionics.

• Expanding R&D, patents, and indigenous aircraft design.

The Way Forward

With major airline orders totaling nearly 1,000 aircraft, India has an unprecedented opportunity to localize manufacturing. This could mean 8,000 engines, 200,000 seats, and thousands of subsystems sourced domestically, strengthening India’s supply chain and global aviation presence.

In conclusion, India’s civil aviation sector is at a historic turning point. With strategic policy support, joint ventures, indigenous production, and a focus on MRO, India can transition from a major aviation market to a global aerospace manufacturing powerhouse. The time to act is now, ensuring India does not miss its golden opportunity in global aviation.

India aviation growth, Domestic air travel India, MRO market India