Advantage India
Robust
Demand
*In April 2026, Airports Authority of India (AAI) expanded regional air connectivity by introducing additional IndiGo flight services between Puducherry and Bengaluru, improving passenger connectivity and supporting tourism and regional economic development.
*India will require over 2200 aircraft by 2042.
*Indian airlines are expanding global connectivity by increasingly deploying long-range narrow-body jets for nonstop international routes from secondary cities.
Opportunities
in MRO
*In March 2026, Prime Minister Mr. Narendra Modi inaugurated Phase I of Noida International Airport at Jewar and laid the foundation stone for a 40-acre Maintenance, Repair and Overhaul (MRO) facility. Developed with an investment of approximately Rs. 11,200 crore (US$ 1.27 billion) under the Public-Private Partnership (PPP) model, the project aims to strengthen India's aviation maintenance ecosystem and promote self-reliance in the MRO sector.
*As of 2024, expenditure in MRO accounts for 12-15% of the total revenue; it is the second-highest expense after fuel cost.
Policy
Support
*As per the present FDI Policy, 100% FDI is permitted in scheduled Air Transport Service/Domestic Scheduled Passenger Airline (Automatic upto 49% and Government route beyond 49%). However, for NRIs 100% FDI is permitted under automatic route in Scheduled Air Transport Service/Domestic Scheduled Passenger Airline.
*In March 2026, the Union Cabinet approved the Modified UDAN Scheme with an outlay of approximately Rs. 29,000 crore (US$ 3.28 billion) over the next 10 years to strengthen regional air connectivity, expand aviation infrastructure and accelerate aviation-led development.
Increasing
Investments
*The Cabinet Committee on Economic Affairs approved the proposal of the Airports Authority of India (AAI) for the development of a Greenfield Airport at Kota-Bundi (Rajasthan) on August 19, 2025, at an estimated cost of Rs. 1,507.00 crore (US$ ~180 million)
*India’s aviation infrastructure received over Rs. 96,000 crore (US$ 11.2 billion) in capital expenditure between FY20 and FY25 through the Airports Authority of India and public-private partnerships.
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