The Indian aviation industry stands on the brink of unprecedented growth, positioning itself as one of the most dynamic markets globally. With a total order book exceeding 1,500 aircraft and a projected demand for over 2,200 aircraft by 2042, as highlighted in the Economic Survey 2023-24, the industry is poised for a transformative journey. Several factors fuel this surge: demand, robust economic activity, increased tourism, higher disposable incomes, favourable demographics, and expanded aviation infrastructure.

A Skyward Trajectory: Market Growth and Economic Impact

India’s economic ascent plays a crucial role in the aviation boom. Expected to become the world’s third-largest economy by 2027, the country will require hundreds of new aircraft and numerous airports to accommodate millions of new passengers. The International Air Transport Association (IATA) predicts that India could surpass current global leaders like the United States and China by 2030, making it the largest aviation market.

The civil aviation sector’s expansion is further supported by an anticipated investment exceeding $170 billion by 2030. According to S&P Global Ratings, this capital infusion will finance record aircraft orders and expand airport capacity to handle an ongoing traffic surge. India’s domestic passenger traffic, already among the world’s fastest growing, is expected to double to 300 million by 2030. International traffic could more than double within the same timeframe, according to CAPA India.

Record-breaking orders and Infrastructure Expansion

Indian airlines have placed record-breaking orders with Airbus and Boeing, with plans to double the number of airports by 2030, creating global aviation hubs that could rival Singapore, Dubai, and Doha. An estimated $150 billion will finance 1,700 aircraft orders, while $24 billion will be allocated for new airports and expansions of existing ones. This rapid growth is evident in domestic passenger trends. In January 2025, air passenger traffic saw a 14.4% year-on-year increase, rising 17.9% above pre-COVID levels—indicative of sustained demand and long-term recovery.

UDAN: Connecting India’s Heartland

A cornerstone of this growth is the Regional Connectivity Scheme (RCS) - UDAN (Ude Desh ka Aam Nagrik). Over the past six years, UDAN has successfully connected underserved and unserved regions, revitalizing airstrips and airports, and boosting regional economies. With a ten-year operational plan, UDAN aims to democratize air travel, ensuring that even the most remote communities gain essential connectivity. The scheme has also facilitated the rise of four new airlines in the past six years, providing smaller regional operators the opportunity to scale and thrive. This ecosystem fosters sustainability and ensures a balanced expansion of the aviation network.

Sustainability Takes Flight

India is equally focused on sustainability within its aviation growth narrative. The Ministry of Civil Aviation (MoCA) has spearheaded initiatives targeting carbon neutrality and net-zero emissions. This includes the standardization of carbon accounting frameworks for airports and mandates for the use of green energy in new and existing facilities. Notably, airports in Delhi, Mumbai, Hyderabad, and Bengaluru have achieved Level 4+ and higher Airports International Council (ACI) Accreditation, reaching carbon-neutral status. Furthermore, 66 Indian airports now operate entirely on green energy, positioning India as a leader in eco-conscious aviation.

The MRO and Drone Industry Boom

The future of India’s aviation services is also anchored in the growth of the Maintenance, Repair, and Operations (MRO) sector and the burgeoning drone industry. The MRO market, currently valued at $1.7 billion, is expected to grow to $4 billion by 2031. However, only 15-20% of this market is serviced domestically, with the majority handled overseas highlighting a significant opportunity for local expansion. The defence MRO sector presents an additional $3 billion opportunity by 2031, driven by India’s fleet of over 2,000 aircraft, including ageing models like the Mig-21s. Expanding domestic MRO capabilities can capture more of this market, reduce costs, and enhance operational efficiency. Simultaneously, India is on track to become a global drone hub by 2030, supported by liberalized regulations and strategic government incentives. This burgeoning industry has the potential to revolutionize sectors ranging from logistics to agriculture, further solidifying India’s position as a leader in aviation technology.

Record-Breaking Passenger Traffic and Airport Expansion

The Directorate General of Civil Aviation (DGCA) reported that Indian airlines transported approximately 146.4 million passengers between January and November 2024, marking a 5.91% annual growth. November alone saw an 11.9% surge compared to the previous year, reflecting the consistent demand for air travel. The number of operational airports has also more than doubled, growing from 74 in 2014 to 157 in 2024, with plans to reach 350-400 in the coming years. This expansion underlines the government’s commitment to enhancing connectivity and supporting the aviation sector’s long-term growth.

Conclusion: The Sky is Not the Limit

India’s aviation industry is navigating a period of extraordinary growth, driven by strategic investments, robust policy support, and an insatiable demand for air travel. From record-breaking aircraft orders to sustainable airport initiatives and the rise of the MRO and drone sectors, the country is crafting a future where the sky is truly not the limit. As India ascends to become one of the world’s largest aviation markets, it stands as a beacon of innovation, sustainability, and connectivity—poised to shape the global aviation landscape for decades to come.