PM Modi Invites Global Companies To Invest In India's Fast-Growing Aviation Sector

Prime Minister Narendra Modi on Monday invited global companies to invest in the country's fast-growing aviation sector, citing a streamlined regulatory framework, ease of compliance, and a simplified tax structure.

The Prime Minister also pointed to the emergence of maintenance, repair, and overhaul (MRO) as a sunrise sector, highlighting that India is accelerating efforts to become a global hub for aircraft maintenance.

He was addressing the International Air Transport Association's (IATA) 81st Annual General Meeting (AGM) and the plenary session of the World Air Transport Summit (WATS).

He noted that in 2014, India had 96 MRO facilities, which has now increased to 154, while 100 per cent FDI under the automatic route, GST reduction, and tax rationalisation measures have given fresh momentum to the MRO sector.

Prime Minister Modi further outlined India's goal to establish a USD 4 billion MRO hub by 2030, reinforcing the nation's aviation growth strategy.

"The new Indian Aircraft Act aligns aviation laws with global best practices, ensuring a streamlined regulatory framework, ease of compliance, and a simplified tax structure, presenting a significant investment opportunity for major international aviation companies," Prime Minister Modi said.

The last IATA AGM in India was held 42 years ago in 1983. It brings together more than 1,600 participants, including top global aviation industry leaders, government officials and international media representatives.

The Prime Minister highlighted the transformative changes the country has undergone in the last four decades, stating that today's India is more confident than ever.

He also underscored India's role in the global aviation ecosystem, not only as a vast market but also as a symbol of policy leadership, innovation, and inclusive development.

"Today, India is emerging as a global leader in space-aviation convergence," he said, adding that the civil aviation sector has witnessed historic advancements over the past decade, which are well recognised.

He outlined three foundational pillars driving India's aviation sector -- a vast market, not merely a collection of consumers but a reflection of India's aspirational society; a strong demographic and talent pool -- where young innovators are pioneering breakthroughs in artificial intelligence, robotics, and clean energy; and an open and supportive policy ecosystem, enabling industrial growth.

"India has become the third-largest domestic aviation market in the world," he said.

He emphasised the success of the UDAN scheme and termed it a golden chapter in Indian civil aviation history.

Prime Minister Modi stated that under this initiative, over 15 million passengers have benefitted from affordable air travel, enabling many citizens to fly for the first time.

India's airlines continue to achieve double-digit growth, with 240 million passengers flying annually, surpassing the total population of most countries worldwide, he noted.

Prime Minister Modi said the projection is that by 2030, this number is expected to reach 500 million passengers.

He also noted that 3.5 million metric tonnes of cargo are transported by air annually in India, and this volume is set to increase to 10 million metric tonnes by the end of this decade.

The Prime Minister also said the country had 74 operational airports in 2014, which has now expanded to 162.

Prime Minister Modi further remarked that Indian carriers have placed orders for over 2,000 new aircraft, signalling rapid growth in the sector.

"India's airports now have an annual handling capacity of 500 million passengers and (the country) is among the few nations setting new standards in user experience through technology," he said, adding that equal priority is being given to safety, efficiency, and sustainability.

He also highlighted India's transition towards sustainable aviation fuels, investment in green technologies, and efforts to reduce carbon footprint.

Underlining that consistent reforms have been a key driver of India's rapidly expanding aviation sector, Prime Minister Modi stressed India's commitment to becoming a global manufacturing hub, with strategic initiatives supporting this vision.

He further said mission manufacturing was announced in this year's budget, reinforcing India's focus on industrial growth.

Prime Minister Modi stressed that India should not be viewed merely as an aviation market but as a value-chain leader. From design to delivery, India is becoming an integral part of the global aviation supply chain.

The Prime Minister stated that India consistently supports Open Skies and Global Connectivity and reaffirmed India's endorsement of the principles of the Chicago Convention, advocating for a more connected and accessible aviation network.

The World Air Transport Summit will focus on key issues facing the aviation industry, including the economics of the airline industry, air connectivity, energy security, sustainable aviation fuel production, financing decarbonisation, and innovations, among others.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)