Trendy information regarding Aviation industry in India

India’s aviation industry is undergoing a period of rapid growth and transformation, driven by massive infrastructure investments, robust domestic demand, and government policy initiatives. The sector is leveraging digitalization and sustainability trends to position itself as a key global aviation hub.
Industry growth and market expansion
· Accelerated passenger growth: Passenger traffic is rising significantly, especially in the domestic sector, propelled by a growing middle class, rising disposable incomes, and the expansion of low-cost carriers. Passenger numbers are expected to double by 2030.

· Third–largest domestic market: India is already the third-largest domestic aviation market globally and is on track to become the world’s third-largest air passenger market by 2026.

· Massive fleet expansion: Indian airlines, led by IndiGo and the Tata Group (Air India, Vistara), are placing record-breaking aircraft orders to meet soaring demand. The overall fleet size is projected to double to 1,200 in the next five years.
Infrastructure development and modernization
· Airport infrastructure: The number of operational airports has dramatically increased from 74 in 2014 to 162 in 2025, with plans to reach 350-400 by 2047. Major Greenfield projects like the Noida and Navi Mumbai International Airports are nearing completion, while existing hubs are undergoing significant upgrades.
· Regional connectivity: Government initiatives like the UDAN (Ude Desh ka Aam Nagrik) scheme continue to boost regional connectivity by reviving underserved routes and developing smaller airports.
· The development of airports is increasingly happening through PPP models, attracting both domestic and foreign investment to build world-class infrastructure.

Technology and digitalization
·  Biometric travel: The “DigiYatra” initiative is gaining traction, allowing for seamless, paperless travel through facial recognition technology at participating airports.

·  AI and automation: Airports are adopting technologies such as AI-driven baggage handling and predictive air traffic control to improve efficiency and passenger experience.

·  Indigenous technology: The GAGAN satellite-based navigation system is a key technological advancement intended to make flying cheaper, safer, and more efficient, especially at smaller airports. 

Sustainability and green aviation

·  Carbon neutrality: Major airports like Delhi, Mumbai, Hyderabad, and Bengaluru have achieved advanced carbon accreditation, with initiatives focused on transitioning to 100% green energy usage.

·  Sustainable Aviation Fuel (SAF): India is exploring the use of alternative fuels and eco-friendly practices to reduce the industry’s environmental footprint, aligning with global climate goals.

·  Urban air mobility: Plans are being considered for future innovations like electric vertical take-off and landing (eVTOL) aircraft and cargo drones to ease urban traffic congestion. 

Maintenance, Repair, and Overhaul (MRO)

· Indigenous MRO: The MRO sector is experiencing a significant boom, reducing India’s reliance on overseas facilities.

· Government incentives: Supportive government policies, including lowered GST on MRO services and incentivizing domestic capacity-building, have fueled the growth of this segment. The MRO industry’s revenue is projected to triple by FY28. 

Challenges and outlook

· Financial headwinds: Despite strong growth, the industry faces challenges like high operating costs due to elevated fuel taxes, intense competition, and supply chain issues that can delay aircraft deliveries.

· Manpower shortage: A growing fleet and expanding airport network have led to an increased demand for skilled professionals, especially pilots and Aircraft Maintenance Engineers, creating a potential talent gap.

· Market concentration: The domestic market remains highly concentrated, with a duopoly of IndiGo and the Tata Group airlines dominating market share.