Prime Minister Narendra Modi has declared that the recent surge in aircraft orders by Indian airlines, totaling over 2,000 new jets, marks just the commencement of a transformative journey for the nation's aviation sector. Speaking at an airline industry summit on Monday, Modi addressed global aviation leaders, emphasizing India's emergence as the world's third-largest domestic aviation market and the fastest-growing in terms of domestic air travel.
Modi highlighted the pivotal role of consistent reforms in propelling the rapid expansion of India's aviation sector. He underscored the government's commitment to establishing India as a global manufacturing hub, supported by strategic initiatives and the "Mission Manufacturing" announcement in this year's budget. Furthermore, he mentioned the Protection of Interest in Aircraft Objects Bill, which grants legal authority to the Cape Town Convention in India, thereby opening new opportunities for global aircraft leasing companies.
The Prime Minister also pointed to incentives offered at Gift City, which have made India an attractive destination for aircraft leasing. He stated that the new Indian Aircraft Act aligns aviation laws with global best practices, ensuring a streamlined regulatory framework, ease of compliance, and a simplified tax structure, presenting a significant investment opportunity for major international aviation companies.
India's aviation sector has witnessed remarkable growth, with the number of operational airports increasing from 74 in 2014 to 162. The UDAN scheme, aimed at enhancing regional connectivity and making air travel affordable, has played a crucial role in this transformation. Modi proudly noted that over 15 million passengers have benefited from the UDAN initiative, enabling many citizens to experience air travel for the first time. The government aims to expand to over 350 airports by 2047.
To support the burgeoning aviation industry, the government has permitted Foreign Direct Investment (FDI) through the automatic route and introduced transparent, royalty-free land allotment for Maintenance, Repair, and Overhaul (MRO) facilities. Minister Naidu has pitched India as a future global hub for MRO services, targeting a $4 billion share of the global MRO market by 2031. He also highlighted the operationalization of assembly lines for C295 military transport aircraft and H130 and H125 helicopters as evidence of the "Make in India" push in aerospace.
IndiGo, India's largest airline, recently entered into agreements with Air France-KLM, Virgin Atlantic, and Delta to expand its long-haul services to North America, Europe, and Britain. This partnership will enable IndiGo to sell flights under its own name on routes operated by its partners, facilitating onward travel from Amsterdam and Manchester, UK, to various destinations in Europe and North America. IndiGo has also placed a firm order for 30 Airbus A350-900s, bringing its total order for this widebody aircraft to 60.
Naidu urged the international aviation community to tap into India's fast-growing regional air transport market, extending a "clear invitation" to global airlines. He envisions India evolving into a $10 billion industry over the next 10 to 15 years, driven by domestic manufacturing of aircraft structures, electronic systems, and avionics.
