Advantage India
Robust
Demand
* Rising working group and widening middle-class demography is expected to boost demand.
* India has envisaged increasing the number of operational airports to 220 by 2025.
* India will require over 2200 aircraft by 2042.
Opportunities
in MRO
* Growth in aviation accentuating demand for MRO facilities.
* As of 2024, expenditure in MRO accounts for 12-15% of the total revenue; it is the second-highest expense after fuel cost.
* 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.
*In June 2023, the US committed to creating a global hub for MRO for high-end drones in India.
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
* 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.
.jpg)
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
MOREMakhana Goes Global: Strategies to Strengthen India’s Export Edge
Makhana (Euryale ferox) is emerging as a global superfood owing to its exceptional nutritional and medicinal value. India dominates its production, ac...
India’s Animation & Comic Industry Expansion: The Rise of Indigenous Animated Content and Comic Storytelling
India’s animation and comic industry is undergoing a dynamic transformation, evolving from a service-based outsourcing hub into a vibrant ecosys...
Driving Global: India’s Rising Passenger Vehicle Exports and its Emergence as an Automotive Export Hub
India’s automotive sector has long been a pillar of its industrial and economic strength. The growing momentum in passenger vehicle exports sign...
IBEF BLOG
MORE
Culinary Diplomacy: How Indian Food Festivals Boost Tourism and Trade
What if diplomacy can be dished out on a banana leaf or served sizzling str...
From Bazaar to Broadband: The Changing Face of India’s Wholesale Market
Wholesale Indian markets have deep historical roots, often as old as the ci...
India’s Sparkling Future: The Rise of Lab-Grown Diamonds
A diamond is forever and has been for generations the symbol of love, legac...
Partners
