India's aviation sector is experiencing a dynamic phase, poised for significant expansion and innovation. Recent data and industry analyses point towards robust growth in passenger traffic, infrastructure development, and technological advancements, setting the stage for a new era of air travel in the country.
Passenger traffic is a key indicator of the sector's health, and recent months have shown impressive gains. In April 2025, domestic air passenger traffic surged by 10.2% year-on-year, reaching approximately 14.55 million travelers. The full financial year 2024-25 saw a 7.6% rise in domestic passengers, with a notable rebound in international travel as well. Indian carriers flew 33.86 million passengers overseas, marking a 14.1% year-on-year jump and a remarkable 49.4% increase over pre-pandemic levels. Projections for the coming years remain optimistic, with domestic air traffic expected to grow by 7-10% in fiscal year 2026. This sustained growth is attributed to rising disposable incomes, enhanced connectivity, and the increasing affordability of air travel for a larger segment of the population.
To accommodate this surge in demand, India is undertaking massive aviation development programs. These include the construction of new airports and the expansion of existing ones. The government aims to increase the number of operational airports from the current 157 to 200 by 2025, and eventually to 400 by 2047. This expansion is crucial for improving regional connectivity and reducing the burden on major metropolitan airports. The Navi Mumbai and Noida International airports, once operational, are expected to significantly ease traffic congestion in Mumbai and Delhi, providing better travel options for passengers.
Indian airlines are also expanding their fleets to cater to the growing demand. The order book of Indian carriers is currently more than double the size of the existing fleet, with over 1,750 new aircraft on order from Airbus and Boeing. IndiGo and Air India, the two major players in the industry, are adding approximately one aircraft per week, a trend that is expected to continue and accelerate in the coming years.
Innovation and sustainability are also key focus areas for the Indian aviation sector. GE Aerospace is playing a central role in driving these advancements, focusing on next-generation, fuel-efficient engines and deep-tech innovations developed by its India-based teams. These efforts aim to reduce the environmental impact of air travel and enhance operational efficiency. The aviation sector is also exploring the use of sustainable aviation fuels (SAF) and other green technologies to further reduce its carbon footprint.
Despite the positive outlook, the Indian aviation sector faces certain challenges. Elevated aviation turbine fuel (ATF) prices, depreciation of the Indian rupee against the US dollar, and supply chain issues continue to impact airlines' profitability. Additionally, the industry needs to address issues such as engine failures and crew shortages to ensure smooth operations.
Looking ahead, the Indian aviation sector is well-positioned for sustained growth and expansion. With increasing passenger traffic, expanding infrastructure, and a focus on innovation and sustainability, the industry is poised to become a major player in the global aviation market. The development of major aviation hubs within the country is expected within the next 5-10 years, further boosting the sector's growth. The NDTV Wings of Change initiative is bringing together industry leaders and policymakers to address these challenges and explore opportunities for sustainable and technologically advanced growth, paving the way for the next generation of aviation in India.
