India’s aviation sector is witnessing unprecedented growth, driven by a surge in demand and the rapid development of new airports. With record numbers of passengers flying, the industry has transformed into the third-largest domestic aviation market after China and the US. According to Statista research, India’s passenger traffic amounted to over 376 million at airports across India in the financial year 2024, of which close to 69.6 million were international travellers, registering a 15 per cent increase compared to 2023. The ambitious expansion plans by Indian carriers with massive orders placed for new aeroplanes is clearly a positive sign of progress for the aviation industry in India.

Industry experts attribute the rapid aviation growth to a combination of factors, including a growing middle class and rising household incomes, the introduction of more low-cost carriers and major infrastructure developments, particularly the increase in operational airports. The adoption of advanced technologies, progressive government policies, foreign direct investment (FDI) and a vibrant tourism industry also contribute to driving demand for air travel.

Another significant growth driver is the regional connectivity scheme, UDAN. According to the Ministry of Civil Aviation, by 2023, 73 unserved/underserved airports, including nine heliports and two water aerodromes, have been operationalised since 2017 under the UDAN scheme. The government has also revealed plans to operationalise 12 new airports across eight states and union territories this year under the scheme.

“The focus on the regional connectivity scheme will have multifaceted benefits. Passengers will be able to enjoy improved air connectivity while airlines will receive concessions for operating regional routes. Underserved regions will also benefit in terms of economic development and increased tourism,” says Jaideep Mirchandani, Chairman of aviation major Sky One.

Now, the challenge before the Government, Indian passenger aviation companies and other stakeholders will be to maintain the growth trajectory and propel it to new heights. “We have already seen some major steps planned by the Government. In the recently concluded Asia Pacific Ministerial Conference on Civil Aviation, India formally adopted the landmark Delhi Declaration, which is expected to establish a framework for strengthening regional cooperation, addressing aviation challenges and ensuring sustainable growth. The declaration, along with coordinated efforts from all stakeholders, is also likely to make air travel safer, more affordable and accessible for all citizens,” says Mirchandani.

He believes that more attention should be paid to research and development, and maintaining a strong supply chain for sustained growth. “Better financial incentives and skill development programs can strengthen the workforce, while collaboration with global players on training and developing domestic MRO (Maintenance, Repair, and Overhaul) will cement India’s position as a key player in global aviation. Strategic partnerships and global alliances will also help Indian carriers extend their international reach,” he concludes.