India should not be viewed merely as an aviation market but as a value chain leader in the sector, Prime Minister Narendra Modi said Monday, as he underscored the investment opportunity that the country presents for global aviation companies. Addressing the annual general meeting of the International Air Transport Association (IATA) in Delhi, Modi said that significant reforms over the past few years have been key drivers of growth for India’s aviation sector, and emphasised India’s commitment to become a global manufacturing hub. He also urged aviation sector majors to not just “make in India” but also “design in India”.
“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 which presents a significant investment opportunity for major international aviation companies”, Modi said.
The Prime Minister also listed maintenance, repair, and overhaul (MRO) as a sunrise sector, saying that India is accelerating efforts to become a global hub for aircraft maintenance and establish a $4-billion MRO hub in the country by 2030. He said that in 2014, India had 96 MRO facilities, which has now increased to 154, adding that 100 per cent FDI under the automatic route, GST reduction, and tax rationalisation measures have given fresh momentum to the sector.
Modi also talked about recent legislative changes brought about by India and incentives being made available for global aircraft leasing companies, saying that these steps have made India an attractive destination for aircraft leasing.
India is the world’s third-largest and fastest-growing major aviation market, and has an expanding aviation sector with global manufacturers like Airbus and Boeing sourcing components and services worth billions of dollars. Other aviation and aerospace companies are also increasing their engagement with India. Modi said that India’s aviation industry stands at a crucial takeoff point and is set to achieve new heights. He noted that its growth and transformation will transcend geographical boundaries, and also drive sustainability, green mobility, and equitable access globally.
The Prime Minister outlined three pillars driving India’s aviation sector—a vast market, strong demographic and talent pool in domains like artificial intelligence, robotics, and clean energy, and an open and supportive policy ecosystem. Modi said that with these strengths, India is poised to elevate its aviation sector to unprecedented heights.
He said that Indian airlines are achieving double-digit growth, with around 24 crore passengers flying annually, and the number is likely to jump to 50 crore by 2030. He also said that India’s air cargo volume is set to surge to 10 million tonnes by the end of the decade from around 3.5 million tonnes at present.
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The Prime Minister said that India is emerging as a global leader in space-aviation convergence, and talked about the growing ambitions of commercialization of space flights and integrating them into civil aviation in future. While noting that such developments will take time to materialise, Modi said that they highlight the sector’s future as a centre of innovation and transformation for which India is fully prepared.
Modi also said that India supports the ideas of open skies and global connectivity, and advocated for a more connected and accessible aviation network. The Prime Minister urged stakeholders to collaborate for accessible, affordable, and secure air travel for all.