{"id":355836,"date":"2026-02-11T16:08:42","date_gmt":"2026-02-11T10:38:42","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=355836"},"modified":"2026-02-11T16:32:36","modified_gmt":"2026-02-11T11:02:36","slug":"aviation-sector-in-india-opportunities-challenges-explained-pointwise","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/aviation-sector-in-india-opportunities-challenges-explained-pointwise\/","title":{"rendered":"Aviation Sector in India &#8211; Opportunities &#038; Challenges &#8211; Explained Pointwise"},"content":{"rendered":"<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-278542\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2024\/01\/Opportunities-and-Challenges-For-Aviation-Sector-In-India.webp?resize=532%2C415&#038;ssl=1\" alt=\"Opportunities and Challenges For Aviation Sector In India\" width=\"532\" height=\"415\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2024\/01\/Opportunities-and-Challenges-For-Aviation-Sector-In-India.webp?resize=300%2C234&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2024\/01\/Opportunities-and-Challenges-For-Aviation-Sector-In-India.webp?resize=1024%2C800&amp;ssl=1 1024w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2024\/01\/Opportunities-and-Challenges-For-Aviation-Sector-In-India.webp?resize=768%2C600&amp;ssl=1 768w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2024\/01\/Opportunities-and-Challenges-For-Aviation-Sector-In-India.webp?w=1280&amp;ssl=1 1280w\" sizes=\"auto, (max-width: 532px) 100vw, 532px\" \/><\/p>\n<p>Aviation Sector in India has experienced significant growth in recent years. India has become <span style=\"color: #ff0000;\">the third-largest domestic aviation market<\/span> in the world. According to the<span style=\"color: #333333;\"> International Air Transport Association (IATA),<\/span> by the year 2030, India is expected to overtake China and the United States as the world\u2019s largest air passenger market. However, the aviation sector in India <span style=\"color: #333333;\">also faces numerous challenges<\/span>, as operational failures &amp; safety incidents threaten IndiGo &amp; Air India. With profits declining &amp; rising passenger dissatisfaction, the industry must address systemic vulnerabilities ahead of the entry of new regional players.<\/p>\n<table style=\"width: 100%; border-collapse: collapse; border-style: solid;\">\n<tbody>\n<tr>\n<td style=\"width: 100%; text-align: center;\"><strong>Table of Contents<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 100%;\"><a href=\"#h8\">Status of Aviation Sector in India<\/a><br \/>\n<a href=\"#toc1\">What is the potential of Aviation Sector In India?<\/a><br \/>\n<a href=\"#toc2\">What are the Challenges with India&#8217;s Aviation Sector?<\/a><br \/>\n<a href=\"#toc3\">What are the Government initiatives for Aviation Sector In India?<\/a><br \/>\n<a href=\"#toc4\">What Should be the Way Forward?<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span style=\"text-decoration: underline;\"><b><a id=\"h8\"><\/a>Status of Aviation Sector in India:<\/b><\/span><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">India&#8217;s aviation industry has experienced significant growth in the past 9 years.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">India is the third-largest domestic aviation market globally, operating over 840 aircraft &amp; carrying more than 350mn passengers annually. But this scale has been achieved through an expansion that is increasingly stretched.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Indian aviation contributes about 5% to the country\u2019s GDP, creating a total of 4 million jobs. In addition to it, there is a $72 billion gross value-added contribution to GDP by this industry.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The Indian aviation fleet consists of over 860 aircraft, accounting for around 2.4% of the global fleet, and total operational airports increased from 74 in 2014 to 162 in 2025. <\/span><\/li>\n<li><span style=\"font-weight: 400;\">Passenger traffic from January to April 2025 showed significant growth (nearly 10% year-on-year), led by low-cost carriers (64.3% market share). <\/span><\/li>\n<\/ul>\n<h2><span style=\"text-decoration: underline;\"><span style=\"color: #000000; text-decoration: underline;\"><strong><a id=\"toc1\"><\/a>What is The Potential of Aviation Sector In India?<\/strong><\/span><\/span><\/h2>\n<ol>\n<li><span style=\"color: #333333;\"><strong>Increased Market Size of Indian Aviation Sector: <\/strong><\/span><span style=\"color: #000000;\"><span style=\"color: #333333;\">According to IATA, India is expected to surpass the aviation sector of the United States and China by 2030. This will make India a <span style=\"color: #ff0000;\">lucrative market for airlines<\/span> and <span style=\"color: #ff0000;\">related businesses<\/span>.<\/span><\/span><\/li>\n<li><strong><span style=\"color: #333333;\">Promotes Balanced Economic Growth:<\/span><\/strong>\u00a0Passenger airlines and air cargo overcome geographic barriers by connecting remote areas which are alienated from the mainstream. <span style=\"color: #ff0000;\">For ex-<\/span> Development of North-East due to enhanced airline connectivity.<\/li>\n<li><strong><span style=\"color: #333333;\">Growth of Tourism sector:<\/span><\/strong>\u00a0Aviation industry function as a <span style=\"color: #ff0000;\">growth pole<\/span> by promoting <span style=\"color: #ff0000;\">spill-over<\/span> &amp; <span style=\"color: #ff0000;\">trickling-down<\/span> of economic growth. <span style=\"color: #ff0000;\">For Ex-<\/span> Aviation sector gives a boost to tourism sector which in turn drives the supporting infrastructure in a region, like roads, railways, hotels, markets. This helps in providing employment opportunities to the locals.<\/li>\n<li><strong>Boost to manufacturing sector:<\/strong>\u00a0<span style=\"color: #333333;\">India\u2019s expanding aviation sector offers potential for the <span style=\"color: #ff0000;\">growth of maintenance, repair, and overhaul (MRO) facilities<\/span>, as well as the development of a domestic aerospace manufacturing industry. <span style=\"color: #ff0000;\">For ex-<\/span> Enhanced employment opportunities in aerospace engine maintenance.<\/span><\/li>\n<li><strong><span style=\"color: #333333;\">FDI in the<\/span> Expansion of Infrastructure:<\/strong>\u00a0Booming aviation sector has attracted <span style=\"color: #ff0000;\">significant FDI to the tune of around ~$3 bn <\/span>in the development of aerospace infrastructure like airports, arrow bridges, airstrips. <span style=\"color: #ff0000;\">For ex-<\/span> Greenfield airport development like Navi Mumbai, Noida (Jewar) airport and expansion of Bengaluru airport.<\/li>\n<li><strong>Increased Employment opportunities:<\/strong>\u00a0The growth of aviation sector in India has created a need for skilled professionals, including pilots, cabin crew, and maintenance staff. <span style=\"color: #ff0000;\">For ex-<\/span> Indian scheduled operators are likely to require 10,900 additional pilots by FY30 (IATA projection).<\/li>\n<\/ol>\n<h2><span style=\"text-decoration: underline;\"><span style=\"color: #000000; text-decoration: underline;\"><strong>What are The Challenges With India&#8217;s Aviation Sector?<\/strong><\/span><\/span><\/h2>\n<ol>\n<li><strong>Increase in number of <span style=\"color: #333333;\">Grounded Unsafe Aircrafts:<\/span><\/strong>\u00a0Airlines like Air India, Spice Jet, Go Air, and IndiGo face issues of poor financial performance due to grounded unsafe aircrafts. <span style=\"color: #ff0000;\">For ex<\/span>&#8211; Over <span style=\"color: #ff0000;\">160 aircraft are currently grounded <span style=\"color: #333333;\">which <\/span><\/span>represents about a quarter of the total fleet size of Indian carriers.<\/li>\n<li><strong><span style=\"color: #333333;\">Supply Chain Disruptions:<\/span><\/strong>\u00a0<span style=\"color: #ff0000;\">Delays in aircraft deliveries<\/span> and supply chain issues with <span style=\"color: #ff0000;\">original equipment manufacturers (OEMs)<\/span> has hindered the industry\u2019s capacity to meet growing demand.<\/li>\n<li><strong>Duopoly in Indian Aviation Market:<\/strong> India\u2019s domestic aviation market is overwhelmingly dominated by two carriers &#8211; <span style=\"color: #ff0000;\">IndiGo (~64% market size)<\/span> and the <span style=\"color: #ff0000;\">Tata group airlines (~27% market size) &#8211; together forming a duopoly controlling nearly 90% of the market<\/span>. This concentration has grown due to industry consolidation (e.g., Air India\u2019s privatization and Tata Group\u2019s merger of its airline units) and the exit or downsizing of several competitors like Jet Airways, GoAir, and others<span class=\"citation-25 citation-end-25\">.<\/span><span class=\"citation-25 citation-end-25\"><span class=\"citation-25 citation-end-25\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-355835 size-full\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/09\/Screenshot-2026-02-11-153626.png?resize=486%2C262&#038;ssl=1\" alt=\"Civil aviation sector\" width=\"486\" height=\"262\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/09\/Screenshot-2026-02-11-153626.png?w=486&amp;ssl=1 486w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/09\/Screenshot-2026-02-11-153626.png?resize=300%2C162&amp;ssl=1 300w\" sizes=\"auto, (max-width: 486px) 100vw, 486px\" \/><\/span><\/span>\n<p><figure id=\"attachment_355837\" aria-describedby=\"caption-attachment-355837\" style=\"width: 269px\" class=\"wp-caption aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"wp-image-355837 size-full\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/02\/Screenshot-2026-02-11-161037.png?resize=269%2C295&#038;ssl=1\" alt=\"Aviation sector\" width=\"269\" height=\"295\" \/><figcaption id=\"caption-attachment-355837\" class=\"wp-caption-text\">Source: The Hindu<\/figcaption><\/figure><\/li>\n<li><strong>Heavy Financial Losses:<\/strong> Most Indian airlines have reported <strong data-start=\"309\" data-end=\"344\">continuous net losses for years<\/strong> despite rising traffic. Several carriers have collapsed (Kingfisher, Jet Airways, Go First) showing that growth in passengers is not getting converted into profitability. Profit margins in India are among the lowest globally (1\u20133%), while costs remain very high due to &#8211; high taxes on Aviation Turbine Fuel (forms 35\u201340% of airline expenses \u2013 among the highest in the world due to taxes and state VAT), intense price competition, aggressive expansion without financial discipline, COVID-19 etc.\n<figure id=\"attachment_355844\" aria-describedby=\"caption-attachment-355844\" style=\"width: 416px\" class=\"wp-caption alignnone\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"wp-image-355844 size-full\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/02\/Screenshot-2026-02-11-161652.png?resize=416%2C302&#038;ssl=1\" alt=\"Aviation sector\" width=\"416\" height=\"302\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/02\/Screenshot-2026-02-11-161652.png?w=416&amp;ssl=1 416w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/02\/Screenshot-2026-02-11-161652.png?resize=300%2C218&amp;ssl=1 300w\" sizes=\"auto, (max-width: 416px) 100vw, 416px\" \/><figcaption id=\"caption-attachment-355844\" class=\"wp-caption-text\">Source: The Hindu<\/figcaption><\/figure>\n<p>Source: The Hindu<\/li>\n<li><strong><span style=\"color: #333333;\">Operational Disruptions due to crew shortage: <\/span><\/strong>Lack of skilled pilots, maintenance engineers, and cabin crew members have led to operational disruptions like <span style=\"color: #ff0000;\">increase in turn-around time of airlines<\/span>.<\/li>\n<li><strong><span style=\"color: #333333;\">Low per-capita penetration of domestic air travel:<\/span><\/strong>\u00a0India\u2019s per capita penetration of <span style=\"color: #ff0000;\">domestic air travel (0.13 seats deployed per capita)<\/span> remains significantly lower than countries like <span style=\"color: #ff0000;\">China (0.49)<\/span> and <span style=\"color: #ff0000;\">Brazil (0.57)<\/span>. This indicates the failure of aviation industry in India to tap the maximum potential of domestic air market.<\/li>\n<li><strong>Inflated Projections:<\/strong>\u00a0Airlines in India often <span style=\"color: #ff0000;\">announce ambitious growth plans without adequately analysing<\/span> their financial security, infrastructural and personnel requirements. <span style=\"color: #ff0000;\">For Ex-<\/span> <span style=\"color: #ff0000;\">Failure of Kingfisher, Jet Airways <span style=\"color: #333333;\">and<\/span> Go First<\/span> on account of inflated projections.<\/li>\n<li><strong><span style=\"color: #333333;\">Regulatory issues:<\/span><\/strong>\n<ul>\n<li><span style=\"color: #ff0000;\">Tough entry barriers<\/span> for new entrants, <span style=\"color: #ff0000;\">high fuel prices<\/span> on account of <span style=\"color: #ff0000;\">high taxes on ATF<\/span> (Air Turbine Fuel) and <span style=\"color: #ff0000;\">monopoly of inefficient public sector airports<\/span> have all acted as barriers in the rapid growth of the airlines sector.<\/li>\n<li>Nearly half of the DGCA&#8217;s sanctioned technical positions remain vacant even as fleet size &amp; passenger volume expand.<\/li>\n<li>The recent disruption in December 2025 have been managed through scheduled exemptions rather than strict enforcement, reflecting a shift towards ad hoc crisis management &amp; underscoring deeper fragilities in India&#8217;s aviation regulatory framework.<\/li>\n<\/ul>\n<\/li>\n<li><strong><span style=\"color: #333333;\">Policy Lacunae:<\/span><\/strong>\u00a0The <span style=\"color: #ff0000;\">Aircraft Act, 1934<\/span> and <span style=\"color: #ff0000;\">Aircraft Rules, 1937<\/span> have not kept pace with modern technology in aerospace. This has led to increased costs of the industry&#8217;s operation and ultimately affected passenger growth.<\/li>\n<li><b>Poor rural connectivity:<\/b>\u00a0With mega airports controlling air and ground space, there has been challenge of enhancing the rural air connectivity. <span style=\"color: #ff0000;\">For ex-<\/span> <span style=\"color: #ff0000;\">Less number of flights to tier 2 and tier 3 towns despite the UDAN scheme<\/span>.<\/li>\n<li><strong><span style=\"color: #333333;\">Environmental Concerns:<\/span><\/strong>\u00a0The Indian aviation industry faces increasing pressure to reduce its carbon footprint and adopt sustainable practices (<span style=\"color: #ff0000;\">The Carbon Offsetting and Reduction Scheme for International Aviation or CORSIA<\/span>). This has also posed a challenge for growth and expansion of the airline sector.<\/li>\n<li><b>Aviation Safety: <\/b>The crash of Air India Airline in Ahmedabad into a residential area in June 2025 that led to the killing of more than 240 people is considered as one of the worst airline disasters. After the Air India tragedy, the Civil Aviation Ministry tabled a report in the Lok Sabha according to which, o<span class=\"citation-69\">ut of 754 aircraft analyzed, <\/span><b data-path-to-node=\"8,0,0\" data-index-in-node=\"45\"><span class=\"citation-69\">377 (exactly 50%)<\/span><\/b><span class=\"citation-69 citation-end-69\"> were flagged for &#8220;repetitive defects&#8221;\u2014issues that occurred three or more times despite maintenance attempts.<\/span><\/li>\n<li><strong>India&#8217;s Pilot Bottleneck:<\/strong>\n<ul>\n<li>IndiGo with ~5000 pilots operating a fleet of 360 aircraft, translating into a pilot-to-aircraft ratio of ~14, which is well below the global benchmark of 18-20 considered necessary for fatigue-mitigated operations. This mismatch exposed the limits of an operating model calibrated for sustained high utilization.<\/li>\n<li>While India&#8217;s aviation expansion has intensified demands for pilots, training capacity has failed to keep pace. Parliamentary disclosures estimate a requirement of 7000 pilots between 2024 &amp; 2026, rising to 25,000-30,000 over the next decade. In contrast, the DGCA issued only 5700 Commercial Pilot Licenses between 2020 &amp; 2024.\n<p><figure id=\"attachment_355839\" aria-describedby=\"caption-attachment-355839\" style=\"width: 488px\" class=\"wp-caption aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"wp-image-355839 size-full\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/02\/Screenshot-2026-02-11-161142.png?resize=488%2C307&#038;ssl=1\" alt=\"Aviation sector \" width=\"488\" height=\"307\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/02\/Screenshot-2026-02-11-161142.png?w=488&amp;ssl=1 488w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/02\/Screenshot-2026-02-11-161142.png?resize=300%2C189&amp;ssl=1 300w\" sizes=\"auto, (max-width: 488px) 100vw, 488px\" \/><figcaption id=\"caption-attachment-355839\" class=\"wp-caption-text\">Source: The Hindu<\/figcaption><\/figure><\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<table style=\"width: 100%; border-collapse: collapse; border-style: solid;\">\n<tbody>\n<tr>\n<td style=\"width: 100%;\">Read More- <a href=\"https:\/\/forumias.com\/blog\/corsia-and-ltag-india-to-join-international-climate-action-in-civil-aviation-from-2027\/\" target=\"_blank\" rel=\"noopener\">CORSIA<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span style=\"text-decoration: underline;\"><span style=\"color: #000000; text-decoration: underline;\"><strong><a id=\"toc3\"><\/a>What are The Government Initiatives For Aviation Sector In India?<\/strong><\/span><\/span><\/h2>\n<table style=\"height: 272px; width: 100%; border-collapse: collapse; border-style: solid; background-color: #ebf06c;\">\n<tbody>\n<tr style=\"height: 133px;\">\n<td style=\"width: 26.2834%; height: 133px;\"><strong><span style=\"color: #333333;\">National Civil Aviation Policy, 2016<\/span><\/strong><\/td>\n<td style=\"width: 73.7166%; height: 133px;\">It aims to<span style=\"color: #ff0000;\"> improve the international footprint of India-based airline services<\/span>. Airlines can commence international operations, provided they deploy 20 aircrafts or 20% of their total capacity (whichever is higher) for domestic operations.<\/td>\n<\/tr>\n<tr style=\"height: 49px;\">\n<td style=\"width: 26.2834%; height: 49px;\"><strong><span style=\"color: #333333;\">UDAN Scheme<\/span><\/strong><\/td>\n<td style=\"width: 73.7166%; height: 49px;\">It aims to <span style=\"color: #ff0000;\">expand access to air travel<\/span> <span style=\"color: #ff0000;\">for Tier 2 and Tier 3 cities<\/span> and shift the traffic pattern away from Metro routes. Under the scheme, 625 routes &amp; 85 airports had been operationalised by 2025.<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 26.2834%;\"><strong><span style=\"color: #333333;\">DigiYatra<\/span><\/strong><\/td>\n<td style=\"width: 73.7166%;\"><span style=\"font-weight: 400;\">Paperless, biometric-enabled air travel to enhance passenger convenience.\u00a0<\/span><\/td>\n<\/tr>\n<tr style=\"height: 30px;\">\n<td style=\"width: 26.2834%; height: 30px;\"><strong>Open Sky Policy<\/strong><\/td>\n<td style=\"width: 73.7166%; height: 30px;\">Aims to <span style=\"color: #ff0000;\">liberalise the aviation sector in India<\/span> by opening the airport sector to private participation. Currently, <span style=\"color: #ff0000;\">6 PPP airports are being developed<\/span> and <span style=\"color: #ff0000;\">60% of airport traffic<\/span> is handled under PPP.<\/td>\n<\/tr>\n<tr style=\"height: 30px;\">\n<td style=\"width: 26.2834%; height: 30px;\"><strong><span style=\"color: #333333;\">Open Sky Air Service Agreement<\/span><\/strong><\/td>\n<td style=\"width: 73.7166%; height: 30px;\">Open Sky Air Service Agreement allows for airlines from the two countries to have an <span style=\"color: #ff0000;\">unlimited number of flights as well as seats<\/span> to each other\u2019s jurisdictions. India has signed these agreements with multiple nations like the US, Greece, Jamaica, Japan, Finland, Sri Lanka.<\/td>\n<\/tr>\n<tr style=\"height: 30px;\">\n<td style=\"width: 26.2834%; height: 30px;\"><strong>FDI Policies, Tax and Duty cuts<\/strong><\/td>\n<td style=\"width: 73.7166%; height: 30px;\"><span style=\"color: #ff0000;\">100% FDI<\/span> is being allowed under the automatic route for <span style=\"color: #ff0000;\">greenfield projects<\/span>, whereas <span style=\"color: #ff0000;\">74% FDI<\/span> is allowed under automatic route for <span style=\"color: #ff0000;\">brownfield projects<\/span>.<br \/>\n<span style=\"color: #ff0000;\">100% tax exemption<\/span> has been provided for airport projects for a period of<span style=\"color: #ff0000;\"> 10 years<\/span>. Indian aircraft Manufacture, Repair and Overhaul (MRO) service providers have been completely exempted from customs and countervailing duties.<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 26.2834%;\"><strong><b>GAGAN (GPS-Aided Geo-Augmented Navigation)<\/b><\/strong><\/td>\n<td style=\"width: 73.7166%;\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">Developed jointly by AAI and ISRO, GAGAN is India&#8217;s own Satellite-Based Augmentation System (SBAS). Operational since 2015, it enhances the accuracy and integrity of GPS signals, improving navigation, especially for approach and landing, and enabling precision approaches at non-instrumented airports, thereby significantly enhancing safety, particularly in challenging terrains.<\/span><\/span><span style=\"color: #ff0000;\"><br \/>\n<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 26.2834%;\"><b>Bhartiya Vayuyan Adhiniyam, 2024<\/b><\/td>\n<td style=\"width: 73.7166%;\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">This is a landmark piece of legislation that came into effect on January 1, 2025, replacing the nearly century-old Aircraft Act of 1934. It modernizes India&#8217;s aviation system, aligning it with contemporary needs and global standards (like the Chicago Convention and ICAO).<\/span><\/span><span style=\"color: #ff0000;\"><br \/>\n<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span style=\"text-decoration: underline;\"><span style=\"color: #000000; text-decoration: underline;\"><strong><a id=\"toc4\"><\/a>What Should be the Way Forward?<\/strong><\/span><\/span><\/h2>\n<ol>\n<li><b>Capacity Expansion: <\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Continue development of new airports, modernization of existing ones, and upgrading air traffic management systems.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Strengthen regional connectivity under the UDAN scheme by incentivizing flights to underserved and remote areas.<\/span><\/li>\n<li>For the emerging players to survive &amp; meaningfully contribute to market de-concentration, active policy support beyond initial NOCs will be essential &#8211; which includes the effective implementation of UDAN subsidies, preferential slot allocation at congested airports, coordinated development of Tier-2 &amp; Tier-3 airport infrastructure and potentially hedging mechanisms or tax relief on ATF to offset price volatility.<\/li>\n<\/ul>\n<\/li>\n<li><b>Boost Cargo &amp; Logistics: <\/b><span style=\"font-weight: 400;\">Develop dedicated air cargo hubs and multimodal logistics parks to support India\u2019s export-import trade.<\/span><\/li>\n<li><strong><span style=\"color: #333333;\">Initiate reforms in the Directorate General of Civil Aviation (DGCA):<\/span><\/strong>\u00a0DGCA should be modernized, well-staffed and incentivised. DGCA should be headed by <span style=\"color: #ff0000;\">aviation professionals rather than bureaucrats<\/span>.<\/li>\n<li><strong><span style=\"color: #333333;\">Promote \u2018Start-up India\u2019 initiative in the aviation sector:<\/span><\/strong>\u00a0Entrepreneurship must be promoted in the <span style=\"color: #333333;\"><span style=\"color: #ff0000;\">maintenance, repair, and overhaul (MRO) facilities of the aviation industry.<\/span><\/span><\/li>\n<li><strong>Rationalisation of taxes:<\/strong>\u00a0Tax rationalisation must be initiated in <span style=\"color: #ff0000;\">aviation fuel taxes<\/span> (State and Central, which in India are among the highest in the world), <span style=\"color: #ff0000;\">air cargo<\/span> and <span style=\"color: #ff0000;\">airport operations<\/span>.<\/li>\n<li><b>Safety Management Systems (SMS) Effectiveness:<\/b><span style=\"font-weight: 400;\"> Ensure that all aviation service providers (airlines, airports, MROs, ATC) have fully functional and effective SMS that are integrated into their daily operations and decision-making. Regulators should audit the effectiveness of these SMS, not just their presence. <\/span><\/li>\n<\/ol>\n<p><strong>Conclusion:<\/strong><br \/>\nWith India accounting for 4.2% of global air traffic, and domestic demand set to rise sharply by reaching 715mn by 2030, failure to address the constraints affecting the aviation sector risks converting India&#8217;s aviation growth into a recurring crisis borne ultimately by the passengers.\u00a0<strong><br \/>\n<\/strong><\/p>\n<figure id=\"attachment_277124\" aria-describedby=\"caption-attachment-277124\" style=\"width: 750px\" class=\"wp-caption aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"wp-image-277124 size-large\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2024\/01\/3-Coloum-Paragraph-Mind-Map-300-x-297-mm-23.png?resize=750%2C743&#038;ssl=1\" alt=\"Aviation Sector in India\" width=\"750\" height=\"743\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2024\/01\/3-Coloum-Paragraph-Mind-Map-300-x-297-mm-23.png?resize=1024%2C1014&amp;ssl=1 1024w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2024\/01\/3-Coloum-Paragraph-Mind-Map-300-x-297-mm-23.png?resize=300%2C297&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2024\/01\/3-Coloum-Paragraph-Mind-Map-300-x-297-mm-23.png?resize=150%2C150&amp;ssl=1 150w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2024\/01\/3-Coloum-Paragraph-Mind-Map-300-x-297-mm-23.png?resize=768%2C760&amp;ssl=1 768w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2024\/01\/3-Coloum-Paragraph-Mind-Map-300-x-297-mm-23.png?resize=1536%2C1521&amp;ssl=1 1536w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2024\/01\/3-Coloum-Paragraph-Mind-Map-300-x-297-mm-23.png?resize=1568%2C1552&amp;ssl=1 1568w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2024\/01\/3-Coloum-Paragraph-Mind-Map-300-x-297-mm-23.png?w=2000&amp;ssl=1 2000w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><figcaption id=\"caption-attachment-277124\" class=\"wp-caption-text\">Created By Forum IAS<\/figcaption><\/figure>\n<table style=\"width: 100%; border-collapse: collapse; border-style: solid;\">\n<tbody>\n<tr>\n<td style=\"width: 100%;\"><strong>Read More: <a href=\"https:\/\/www.thehindu.com\/business\/Industry\/a-reckoning-for-indias-aviation-sector\/article70615160.ece\" target=\"_blank\" rel=\"noopener\">The Hindu<\/a><\/strong><br \/>\n<strong>UPSC Syllabus-<\/strong> GS III, Infrastructure: Airports<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Aviation Sector in India has experienced significant growth in recent years. India has become the third-largest domestic aviation market in the world. According to the International Air Transport Association (IATA), by the year 2030, India is expected to overtake China and the United States as the world\u2019s largest air passenger market. However, the aviation sector&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/aviation-sector-in-india-opportunities-challenges-explained-pointwise\/\">Continue reading <span class=\"screen-reader-text\">Aviation Sector in India &#8211; Opportunities &#038; Challenges &#8211; Explained Pointwise<\/span><\/a><\/p>\n","protected":false},"author":10391,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[130],"tags":[],"class_list":["post-355836","post","type-post","status-publish","format-standard","hentry","category-7-pm","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/355836","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10391"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=355836"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/355836\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=355836"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=355836"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=355836"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}