Advantage India
Robust
Demand
* Rising working group and widening middle-class demography is expected to boost demand.
* Country will become the third-largest aviation market in terms of passengers by 2024.
* India will require over 2200 aircraft by 2042.
Opportunities
in MRO
* By 2028, the MRO industry is likely to grow over US$ 2.4 billion from US$ 800 million in 2018.
* Revenues of domestic MRO services providers in India are expected to triple by FY28.
* Union Budget 2024-25 introduces incentives to boost MRO activities in aviation, including extending export and re-import periods for repairs and implementing a 5% uniform IGST on aircraft parts.
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.
Increasing
Investments
* Six international airports completed under PPP. The sector is expected to witness investments worth US$ 25 billion by 2027.
* The Ministry of Civil Aviation is developing Public-Private Partnership (PPP) modalities for the privatization of 25 airports under the National Monetization Pipeline.
Related News
MOREAviation India / Major Airports
- Delhi
- Mumbai
- Chennai
- Bengaluru
- Kolkata
- Hyderabad
IBEF Campaigns
MORE
Aatmanirbhar Bharat Utsav 2024
Union Minister of External Affairs, Dr. S. Jaishankar and Union Commerce an...
Case Studies
MOREUnlocking Play: Evolution of India’s Toy Sector
The history of toy-making in India is extensive and varied, spanning thousands of years. Terracotta figurines, wheeled carts, and animal-shaped toys t...
Shaping the Future: How PM Ujjwala Yojana is Addressing India's Energy Needs
India, with its large population and diverse socio-economic conditions, has long struggled to ensure clean and affordable energy access for all, espec...
India's Electronics Sector: Pathway to Global Value Chain Integration
Electronics manufacturing plays an essential role in the global supply chain, fuelling everything from electric cars on the road to smartphones in our...
IBEF BLOG
MORE
Seaweed and the Blue Economy: India's Path to Coastal Prosperity
Seaweed, a highly versatile marine resource, holds significant potential fo...
From Fields to Fuel: The Indian Sugar Industry’s Role in Advancing Ethanol Blending
The Indian sugar industry is undergoing a transformation as it embraces eth...
Revolutionising India's Edible Oil Sector: Pathways to Sustainable Growth
India ranks fourth in the world after the United States, China, and Brazil ...
Partners
