In News

• India’s aviation sector is undergoing major infrastructure expansion and regional connectivity enhancement.

India’s aviation sector 

• It is growing and includes scheduled air transport (domestic and international airlines), non-scheduled services (charter and air taxis), and air cargo (cargo and mail transport).
• It is witnessing rapid growth, driven by rising demand and strong government support through strategic policies. 
• It has transformed into a vibrant and competitive market, making India the third-largest domestic aviation market globally, after the USA and China.
• India’s domestic air passenger traffic reached a historic milestone, surpassing 5 lakh passengers in a single day in 2024.
  • Over the past decade, domestic air passenger traffic has grown 10-12% annually.
• India boasts 13–18% of women pilots, which ranks among the highest globally.
  • The Directorate General of Civil Aviation (DGCA) targets 25% representation of women in all aviation roles by 2025.

Related Steps 

• Parliament passed the Protection of Interest in Aircraft Objects Bill, 2025, aligning India’s aviation leasing laws with global standards to reduce leasing costs.
• The Bharatiya Vayuyan Adhiniyam 2024 modernized India’s aviation sector, replacing the colonial-era Aircraft Act from 1934.

• Foundations for new terminals have been laid in cities like Varanasi, Agra, Darbhanga, and Bagdogra.
• Greenfield Airports: Since 2014, 12 out of 21 approved Greenfield Airports have become operational, including Durgapur, Shirdi, Kannur, Kushinagar, Itanagar, and others.
  • Projects at Noida (Jewar) and Navi Mumbai are progressing, with completion targeted by FY 2025-26. 
• The government plans to develop 50 more airports and connect 120 new destinations in the next 10 years.
• Capital Investment: Over ?91,000 crore has been allocated under the National Infrastructure Pipeline (NIP), with ?82,600 crore already spent by November 2024.
• RCS–UDAN: Expanding Regional Connectivity Since 2016, the UDAN scheme has operationalised 619 routes and connected 88 airports, making air travel more accessible and affordable.
  • In 2024, 102 new routes were launched, including 20 in the North East.

Challenges 

• India’s aviation industry is growing rapidly but experts warn of challenges, including overdependence on imports and a shortage of skilled talent. 
• Despite global supply chain diversification, India’s share in aviation exports remains low.
• Current arbitration frameworks are insufficient to handle complex aviation disputes, leading to cases being resolved in global hubs like Singapore, London, and Paris.

Conclusion and Way Forward 

• India’s aviation sector is undergoing a major transformation, marked by infrastructure development, improved regional connectivity, and a focus on sustainability.
• Initiatives like RCS-UDAN have expanded air travel access, boosting economic growth in underserved areas. 
• With rising domestic and international passenger numbers, India is set to become a global aviation hub. 
• But there’s a need to increase indigenisation and value-added production to strengthen the ecosystem.
• India must focus on neutrality, transparency, and institutional strength to align with global best practices in aviation arbitration.
• The industry stakeholders should engage and collaborate with policymakers to implement efficient and rational decisions that would boost India’s civil aviation industry.

Source :PIB