India's Civil Aviation Sector
Growth Trajectory and Policy Framework
India is the world's third-largest domestic aviation market and is projected to become the largest by 2030-2040. Indian carriers operated approximately 750 aircraft in 2024 and are expected to operate over 2,000 aircraft within a decade — driven by rising middle-class incomes, UDAN-enabled regional connectivity, and the massive capacity expansions underway at IndiGo, Air India (now Tata-owned), and Akasa Air.
The policy framework enabling this growth includes: 100% FDI in greenfield airports and airlines (except for scheduled air transport services, where 49% FDI for foreign airlines); the UDAN (Ude Desh ka Aam Nagrik) scheme for regional connectivity; liberalised Maintenance, Repair and Overhaul (MRO) GST policy (reduced from 18% to 5%); and the National Civil Aviation Policy (NCAP) 2016.
- UDAN Scheme: launched October 2016; connects underserved regional cities via subsidised airfares; 766 routes sanctioned, 274 operationalised (as of 2025); serves 45 airports and 3 heliports
- India's domestic passenger market: ~150 million passengers/year (FY 2024-25); projected 500+ million by 2040
- Aircraft orders pending delivery: IndiGo alone has 1,000+ aircraft on order (Airbus A320neo family); Air India has 470+ orders; Akasa Air 220+ on order
- India's aircraft fleet (2024): ~750 commercial aircraft; projected 2,300+ by 2040
- Airport capacity: 148 operational airports; Government targeting 220 airports by 2025 under UDAN
● Tracked since February 10, 2026 · last seen April 08, 2026 · updates as the daily brief publishes