Aviation

India’s journey toward Viksit Bharat 2047 is closely tied to the growth of civil aviation, which has become both an enabler and a symbol of national progress. The sector contributed $53.6 Bn to GDP in FY 2023–24, 1.5% of the economy, and supports 7.7 Mn jobs. Passenger traffic has risen sharply, from 460 Mn in 2014 to nearly 750 Mn in 2025, making India the world’s third-largest domestic aviation market. ICAO estimates that every dollar invested in aviation multiplies GDP by 3.1 times, while each aviation job creates 6.1 additional jobs.

Airport expansion is the most visible marker of this transformation: operational airports have doubled from 74 in 2014 to 159 in 2024, with a target of 350 by 2047. Complementing this, the UDAN scheme has connected 90 airports, 15 heliports, and 2 water aerodromes across 625 routes, enabling nearly 15 Mn passengers to access affordable regional air travel, backed by $485 Mn in viability funding.

The sector is also becoming a manufacturing hub. India’s MRO market, projected at $4.1 Bn by 2031, is supported by policy reforms such as 100% FDI and a uniform 5% IGST on aircraft components. Invest India has identified high-import-dependency areas in MRO and aerospace parts, creating investment opportunities. Major programmes such as Tata Boeing Aerospace’s fuselage production, Airbus–Dynamatic collaborations, and the C295 Make in India initiative (with over 85% structures locally manufactured) showcase Atmanirbhar Bharat in action.

Alongside, new aerospace clusters and next-generation airports adopting AI-driven operations, biometric security, and carbon-neutral practices highlight India’s integrated approach. Looking ahead, the target of 50 new airports in five years and 120 new destinations within a decade will drive infrastructure, fleet growth, and MRO demand.

As India approaches its centenary of independence, the aviation market is expected to scale from $30 Bn today to nearly $1 Tn by 2047. With airports becoming economic hubs and catalysts for regional development, the question for global investors is no longer if they should participate in India’s aviation growth story, but how quickly they can join this transformative journey.