Aviation

India, with over 100 operational airports, is the world's fastest growing and 3rd largest domestic aviation market.

Last updated: September 8, 2025

Rapid growth, driven by increased air travel demand, government initiatives, and infrastructure development

23%

Passenger Traffic Growth

106%

Foreign Tourist Arrival growth

34

Total Flying Training Organizations

45.9%

Domestic Aircraft Movement Growth

411.76 million passengers

Total passenger traffic (International + Domestic) in FY25.

3.71 MMT freight traffic

Total freight traffic (International + Domestic) in FY25, up from 2.70 MMT in FY16, growing at a CAGR of 2.80%.

1,394 thousand tonnes (Domestic) & 2,325 thousand tonnes (International)

Breakdown of freight traffic in FY25.

2.87 million

Aircraft movement in FY25, growing from 2.05 million in FY17 at a CAGR of 3.85%.

PLI incentive scheme to support indigenous drone industry

For the effective operation and smooth implementation of the Production Linked Incentive (PLI) scheme,the Ministry of Civil Aviation has formulated and notified the operational guidelines.

National Air Sports Policy 2022

The NASP, 2022, aims to create a structure that would help “promote the country's air sports sector, by way of making it safe, affordable, accessible, enjoyable and sustainable.”
Krishi UDAN 2.0

Krishi UDAN 2.0 lays out the vision of improving value realization through better integration and optimization of Agri-harvesting and air transportation and contributing to Agrivalue chain sustainability and resilience under different and dynamic conditions.
National Monetisation Pipeline 2022

The project aims to unlock value in brownfield projects by engaging the private sector.
Policy on Regional and Remote Area Air connectivity

To promote the regional air connectivity.
Regional Connectivity Scheme

To facilitate / stimulate regional air connectivity by making it affordable.
Aircraft Financing and Leasing

As the world’s third largest domestic aviation market, the time is ripe for India to enter into aircraft financing and leasing activities from Indian shores.

Krishi Udaan

Krishi Udaan is to be launched by the Ministry of Civil Aviation on international and national routes. This will immensely help improve value realisation especially in North-East and tribal districts.

Policy to Better Utilise Civilian Airspace

Only 60% of the Indian airspace is freely available. Herein, restrictions on utilisation of the Indian Air Space will be eased so that civilian flying becomes more efficient This is expected to bring a total benefit of about Rs.10 billion per year for the aviation sector.
Global Hub for Aircraft MRO

Aircraft component repairs and airframe maintenance to increase from Rs.8 billion to Rs.20 billion in three years. Major engine manufacturers in the world are expected to set up engine repair facilities in India in the coming year.
AAI Startup Policy

The National Civil Aviation Policy 2016 (NCAP) has a target to enable 30 crore domestic flight ticketing by 2022.

Review of FDI in Civil Aviation

To expand the scope of investment and activity in the civil aviation space.

Foreign Exchange Management (Non-debt Instruments) (Third Amendment) Rules, 2020

Issued on July 27, 2020.
Aircraft (Amendment) Bill 2020

The Amendment would provide the sector with a regulatory framework within which growth and development can be sustained.

Federation of Indian Airlines

http://www.fiaindia.in/contact.html

+91-11-46 16 13 18/ 19/20

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Represent the airline industry and focuses on inter-airline cooperation.

International Air Transport Association

+65 6499-2424

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Driving a safe, secure and profitable air transport industry worldwide.

Civil Air Navigation Services Organisation

+31 (0)23 568 5380

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It is the global voice of air traffic management worldwide.

Airports Authority of India

01124632950

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AAI manages 125 airports in India.

Ministry of Civil Aviation

Investment Opportunities

  • Infrastructure- Government keen to modernise airport infrastructure through Nextgen Airports for Bharat initiative.
  • Regional connectivity - India plans to connect unserved and under-served airports under the UDAN-2 scheme.
  • Investment - US$1.6bn worth of investment opportunities in building new passenger and cargo handling capacity.
  • Cargo - By 2023, total air freight traffic in India is expected to touch 4.1mn tonnes from 2.9mn tonnes currently.
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Key Investors

India has a well-oiled enterprise promoting machinery that is backed by strong legislative, judiciary, executive and capital establishments

With 70% market share, runs design, engineering and research facilities

With engineering centres in India, a major supplier to aerospace sector

Runs 7 manufacturing plants and 5 R&D centres for global operations

A major supplier of commercial aircraft, manufactures aerospace components

Singapore Airlines set to scale up India operations to tap growing market

Etihad Airways of United Arab Emirates, is expanding India operations

ENABLING ENVIRONMENT

India has a well-oiled enterprise promoting machinery that is backed by strong legislative, judiciary, executive, and capital establishments

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