How Technology and Digitalisation Are Reshaping the Indian Aviation Industry

India’s aviation sector is growing at a highly accelerated speed. Today, it is the world’s third-largest civil aviation market. Fuelled by rising incomes and policy support, passenger traffic is projected to surge from ~376 million currently to as much as three to three and a half billion by 2047. To meet this demand and improve service, the industry is embracing a wave of digitalisation. Major airlines such as Air India and IndiGo, and airports such as Delhi, Mumbai and Hyderabad, are adopting artificial intelligence (AI), cloud platforms, Internet of Things (IoT), biometric identity and other advanced technologies. Initiatives such as the DigiYatra biometric boarding programme (15 million users until August 2025), AI chatbots handling ~30,000 inquiries daily and IoT-enabled smart baggage trolleys in Hyderabad demonstrate how digitisation is improving efficiency and passenger convenience. These innovations, along with cloud-based revenue management and analytics, are helping Indian carriers lift revenue and cut costs. At the same time, sustainability and security are priorities, from Sustainable Aviation Fuel (SAF) agreements to new cybersecurity measures.

India’s aviation industry has undergone a remarkable transformation in the past decade. Once a fragmented sector with limited routes, it now connects hundreds of cities through 159 operational airports (as of Feb 2025). Government initiatives such as the Ude Desh ka Aam Naagrik (UDAN) regional connectivity scheme has played a key role by subsidising flights to underserved regions. Under UDAN, 619 new regional routes and 88 airports are now operational. Meanwhile, strong economic growth has driven demand: by Nov 2024 domestic air travel reached 228.1 million passengers, nearly doubling from the total before 2014. If current plans proceed, India will have nearly 300 airports by 2047 and passenger volumes of three to three and a half billion. The Airports Authority of India (AAI) and private operators are rapidly expanding infrastructure with Rs. 91,000 crore (US$ 10.44 billion) planned in airport capital expenditure (capex) under the National Infrastructure Pipeline for FY20 to FY25, with a target to add 50 airports in the next five years. In this dynamic context, cost pressures and capacity constraints are driving digital change. Airlines face intense competition: IndiGo now carries ~65% of domestic traffic, and Akasa/Star Air and new Low-Cost Carriers (LCCs) are expanding rapidly. To stay competitive and profitable, carriers and airports are turning to technology solutions. Meanwhile, national policies support digitisation: the Ministry of Civil Aviation has launched the “Digital India”–style DigiYatra programme for seamless passenger processing, passed modern aviation legislation, and enabled 100% Foreign Direct Investment (FDI) in airports to attract investment. In short, India’s aviation sector is on a high-growth trajectory, and technology adoption has become a strategic imperative to ensure safe, efficient and customer-friendly growth.

Core technology adoption areas

Biometric and digital identity systems

India is rapidly rolling out biometric boarding and identity verification to create a touchless travel experience. The flagship initiative is Digi Yatra, a facial-recognition platform for seamless check-in and boarding. As of mid-2025, Digi Yatra has over 15 million active users and operates across 24 airports nationwide. It allows travellers to link their Aadhaar (national ID) and boarding pass in advance, then simply walk through smart gates with face-scans replacing manual ID checks. Similarly, AAI has implemented Biometric Boarding Systems (BBS) at key hubs (first Delhi, Bengaluru and Varanasi, then expanding to Kolkata, Pune, Vijayawada by Mar 2023). More than 200,000 passengers have already used these facial recognition gates and wait times for boarding are reported to have fallen sharply. Importantly, India’s approach is designed with privacy: the system uses blockchain-based digital IDs (decentralised identifiers) so travellers’ control when and how biometric data is shared. These digital identity systems promise major efficiency gains, for example, at Delhi airport the entire entry-to-gate process can now be handled in seconds via an e-gate. In future, the plan is for DigiYatra coverage to reach over 80% of domestic travellers by 2028. By enabling automated bag-drop (a facial-recognition-equipped drop-off kiosk at Bengaluru’s KIA, for example) and eliminating paper checks, biometrics and digital IDs are becoming foundational to India’s modern airport experience.

AI and ML

AI and ML are being embedded across airline and airport operations. On the customer-facing side, airlines have launched AI-driven chatbots and virtual assistants that can handle routine queries. For instance, Air India deployed an AI virtual agent called AI.g (short for ‘Artificially Intelligent Guest’) that handles about 30,000 customer queries per day across 1,300 topics. It achieves a remarkable 97% “containment” rate, meaning only 3% of queries require human agent backup. This has drastically reduced call centre workloads. Similarly, IndiGo introduced a generative-AI chatbot named “6Eskai” (launched Nov 2023) which uses GPT-4 to converse with passengers in 10 Indian languages. Early results show 6Eskai has cut agents’ workload by about 75%. Internally, airlines use ML models for predictive maintenance: sensor data on engine/vibration is analysed to forecast component replacements before failures occur, improving fleet uptime. Flight planning and fuel optimisation also benefit from ML (e.g. optimising routes for wind patterns and load). These AI systems free staff from routine tasks, while enabling more personalised service (chatbots can recall loyalty data, suggest upgrades, etc.). Advanced analytics are also powering intelligent assistants for crew scheduling and baggage tracking. Overall, the adoption of AI is transforming customer support and operations. (Air India’s award-winning app even includes AI.g as a built-in “virtual concierge”.)

Cloud computing and digital platforms

Airlines and airports are migrating core IT systems to cloud and platform-based solutions for scalability and agility. Many carriers are replacing legacy mainframes with modern Passenger Service Systems (PSS) on the cloud. For example, IndiGo (which handles ~65% of India's domestic traffic) uses Navitaire's New Skies PSS in the cloud and has also selected Amadeus Revenue Management (RM) Flex, a cloud-based, AI-driven pricing platform integrated with its Navitaire system. This enables IndiGo to make real-time changes to fares according to market demand. Air India implemented a full IT transformation after privatisation and shifted the infrastructure to Microsoft Azure to use cloud services and AI solutions. It also modernised its contact centre onto Microsoft Teams. On the airport side, cloud-based operations platforms (such as Delhi’s Unified Total Airside Management [UTAM]) integrate data from multiple sources (flights, ground vehicles, baggage systems) in real time. According to an industry report, India’s aviation cloud market is expected to grow ~18.8% annually, reflecting this trend. In practice, cloud adoption means faster rollout of new features (e.g. mobile check-in apps), more robust disaster recovery and the ability to harness big data analytics.

IoT and smart infrastructure

Airports and airline ground operations are using IoT to create “smart” infrastructure. A flagship example is Hyderabad Airport; Rajiv Gandhi International Airport (RGIA), which deployed India’s first IoT-enabled smart baggage trolleys. Some 3,000 trolleys are fitted with LoRa (Low-Power Wide-Area) sensors so their location and usage can be monitored in real time. If too many trolleys accumulate at a gate, or none in a zone, the system alerts staff to move resources reducing passenger waits. Hyderabad also launched an AI-powered “digital twin” operations centre that aggregates live data (passenger flow, baggage, runways) to optimise operations proactively. Across India, airports have automated baggage handling with AI: Delhi, Mumbai and Bengaluru now use high-speed, automated sorters that minimise manual errors. Bengaluru’s airport even allows passengers to self-drop checked bags at kiosks using facial recognition, eliminating the need for ID checks at the counter. Smart security lanes with automated tray return and CT scanners providing 3D images have been rolled out (e.g. Bengaluru, Hyderabad), speeding up screening. In airside operations, runway sensors (an IoT application) detect surface hazards and report to vehicles. The upcoming Navi Mumbai airport is being built with full digital construction planning (Building Information Modelling [BIM]) to ensure modern infrastructure. Even tarmac vehicles are becoming smart: semi-robotic taxi-tugs (taxibots) are being tested to allow planes to taxi without jet engines, reducing fuel consumption. Overall, IoT and sensor networks are facilitating real-time visibility and control throughout airports, preventing delays and enhancing security.

Conclusion

Indian aviation is fundamentally being transformed by technology and digitalisation. The industry is changing almost every facet of air travel, with biometric boarding, AI-powered chatbots and more. These innovations are not merely nice to have features, but critical facilitators in managing the explosive growth (three+ billion passengers by 2047) of India and enhancing safety, efficiency and customer service. Smart investments in cloud platforms, AI/ML, IoT and data analytics can increase revenue, reduce delays and improve the passenger experience, as demonstrated by airlines such as Air India and IndiGo and airports such as Hyderabad and Delhi. They are also weaving in sustainability and security technologies, which will help the sector become more resilient and greener. The future will introduce even more innovative technologies such as AI, blockchain and 5G-based systems. The success of the aviation industry in India will rely on coherent strategy, ongoing creativity and partnership among stakeholders. The industry is poised to continue its upward trend with the recommended actions and best practises that will bridge the Indian people and economy, linking the two via the sky.