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Daily-current-affairs / 07 Aug 2025

Connecting India, Empowering Bharat: The Civil Aviation Push

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In its World Air Transport Statistics (WATS) 2024, International Air Transport Association (IATA) ranked India fifth globally in terms of total air passengers handled, with 211 million passengers. Complementing this, ICAO acknowledged India’s improved air safety and regulatory performance, awarding an Effective Implementation (EI) score of 85.65%, a sharp rise from 69.95% in 2018.

India’s civil aviation sector is undergoing a rapid and far-reaching transformation. In 2024, the country handled over 350 million air passengers, making it the third-largest aviation market in the world. What began as a push to connect remote regions and democratize air travel has now evolved into a robust aviation ecosystem backed by legislative reforms, massive infrastructure expansion, and strategic investments in safety and technology.

Global aviation bodies such as the International Air Transport Association (IATA) and the International Civil Aviation Organization (ICAO) have recognised India’s growing importance. While IATA’s World Air Transport Statistics (WATS) for 2024 ranked India fifth globally in terms of total passengers handled (211 million), ICAO acknowledged India’s improved regulatory performance with an Effective Implementation score of 85.65%—a major jump from 69.95% in 2018.

The Significance of India’s Aviation Industry

    1.   A Rapidly Expanding Market

    India is projected to become the third-largest aviation market by 2030, surpassing the US and China in passenger volume. This puts India at the centre of attention for global airlines, aircraft manufacturers, and service providers.

    2. Balanced Economic Development

    Air connectivity acts as a geographic equaliser. The North-Eastern states, in particular, have witnessed stronger integration with national economic networks due to enhanced airline connectivity.

    3. Boost to Tourism and Infrastructure

    Improved air access has boosted tourism and allied sectors such as hospitality and transport, driving both direct and indirect employment across various regions.

    4. Growth in Manufacturing and MRO

    India’s aviation expansion is stimulating demand for domestic Maintenance, Repair, and Overhaul (MRO) services and aerospace manufacturing—critical to becoming self-reliant in aviation technology.

    5. FDI-Led Infrastructure Expansion

    With nearly $3 billion in FDI, India is upgrading key airports (Delhi, Bengaluru) and building new greenfield airports in Navi Mumbai and Jewar (Noida).

    6. Job Creation

    As per IATA, Indian airlines will need over 10,900 new pilots by FY30, in addition to thousands of cabin crew, ground staff, and engineers.

    Laws Regulating the Aviation Sector

    To align with global practices and support its aviation ambitions, India has introduced two major legislative reforms:

    Protection of Interest in Aircraft Objects Bill, 2025

    ·         Aligns India with the Cape Town Convention, 2001.

    ·         Aims to reduce aircraft leasing and financing costs.

    ·         Lowers lease premiums, previously 8–10% higher than global norms.

    ·         Offers legal clarity to attract aircraft leasing hubs.

    Bharatiya Vayuyan Adhiniyam, 2024

    ·         Replaces the colonial Aircraft Act, 1934; effective from 1 January 2025.

    ·         Modernises regulations in line with ICAO and the Chicago Convention.

    ·         Promotes ‘Make in India’ by easing licensing and boosting transparency.

     

    Key Challenges in India’s Aviation Sector

    1. Operational and Safety Deficits

    ·         Human Resource Shortages: India faces acute deficits in trained pilots, aircraft engineers, ground crew, and air traffic controllers. Long duty hours and fatigue-related issues increase safety risks. The Aon 2025 APAC report identifies major workforce gaps.

    ·         Maintenance Lapses: DGCA inspections have revealed critical safety violations, such as unserviceable onboard systems and missing emergency equipment. Many regional airports lack modern infrastructure and adequate emergency response capacity.

    ·         Grounded Aircraft: Over 160 aircraft are grounded, mainly due to financial stress and delays in maintenance—severely impacting operational capacity. Insolvency issues in airlines like Go First and SpiceJet have compounded the problem.

    2. Supply Chain and Infrastructure Constraints

    ·         Supply Chain Bottlenecks: Disruptions in the global supply chain and delays from original equipment manufacturers (OEMs) have hampered fleet expansion, despite rising passenger demand.

    ·         Inadequate Rural Connectivity: The UDAN scheme’s promise remains under-fulfilled as many tier-2 and tier-3 cities lack viable airport infrastructure, making regional routes commercially unviable.

    3. Market Structure and Financial Viability

    ·         Market Concentration: IndiGo and Tata Group airlines together command 80% of the market share—creating a near-duopoly that raises concerns over fare competition, innovation, and service quality.

    ·         Persistent Financial Losses: Indian airlines are expected to post a collective loss of $1.6 to $1.8 billion in FY24, driven by poor cost management, high fuel costs, and low returns on added capacity.

    ·         Overestimated Growth Projections: The collapse of Kingfisher, Jet Airways, and Go First highlights how unrealistic expansion plans—unmatched by financial and infrastructural readiness—lead to systemic fragility.

    4. Regulatory and Legal Hurdles

    ·         Regulatory Gaps: The Directorate General of Civil Aviation (DGCA) is operating with 53% staff vacancy, limiting effective oversight. Its regulation is often reactive rather than preventive.

    ·         Complex and Onerous Compliance: High taxes on Aviation Turbine Fuel (ATF), non-transparent airport slot allocation, and compliance burdens deter new entrants. State-run airport monopolies further hinder operational efficiency.

    ·         Outdated Legal Framework: The Aircraft Act (1934) and Aircraft Rules (1937) have not kept pace with modern technologies or business models—adding to legal ambiguity and operational complexity.

    5. Sustainability and Environmental Compliance

    ·         Rising Green Compliance Costs: India is a signatory to global frameworks like CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation), which mandates emission reductions. While necessary, this imposes additional financial and planning burdens on airlines already under stress

    Framework and Governance for Aviation

    Directorate General of Civil Aviation (DGCA)

    ·         Regulates safety, licensing, and flight operations.

    ·         Coordinates with ICAO and ensures Safety Management Systems.

    Airports Authority of India (AAI)

    ·         Manages airport development and air traffic control across India.

    Aircraft Accident Investigation Bureau (AAIB)

    ·         Independent body under ICAO rules.

    ·         Notably decoded black box data in the Air India Flight 171 case.

    Bureau of Civil Aviation Security (BCAS)

    ·         Responsible for aviation security and compliance with ICAO protocols.

    Growth, Reforms, and Future Outlook

    Infrastructure Development and Capital Investment

    Airport Expansion

    ·         New terminal foundations laid in Varanasi, Agra, Darbhanga, and Bagdogra.

    ·         Since 2014, 12 of the 21 approved greenfield airports have become operational (e.g., Mopa, Kushinagar, Shivamogga).

    ·         Jewar and Navi Mumbai airports to go live by FY 2025–26.

    National Infrastructure Pipeline (NIP)

    ·         ₹91,000 crore allocated (FY20–FY25), ₹82,600 crore utilised by November 2024.

    ·         Target: 50 new airports in five years and 120 new destinations by 2035.

    UDAN Scheme and Regional Connectivity

    Achievements So Far

    ·         619 routes and 88 airports made operational since 2016.

    ·         102 new UDAN routes added in 2024 alone—20 in the Northeast.

    ·         Over 1.5 crore passengers served; 4 crore more targeted in the next decade.

    ·         Focus remains on tribal, hilly, and aspirational districts.

    UDAN Yatri Café

    ·         Offers affordable food at airports: tea at ₹10, samosa at ₹20.

    ·         Successful rollouts in Kolkata and Chennai are now being scaled nationally.

    Safety, Digital Infrastructure, and Seaplanes

    Aviation Safety Enhancements

    ·         New Digital Flight Data Recorder (DFDR) and Cockpit Voice Recorder (CVR) lab launched at AAIB, New Delhi.

    ·         Developed with HAL at a cost of ₹9 crore.

    Seamless Travel via Digi Yatra

    ·         Enabled at 24 airports.

    ·         Over 80 lakh downloads; 4 crore+ journeys completed.

    ·         Allows contactless, secure boarding and travel.

    Seaplane Operations

    ·         New guidelines released in August 2024.

    ·         UDAN 5.5 includes 50+ water bodies for seaplane connectivity.

    Strategic Reforms and International Engagement

    ·         MRO Boost: 5% IGST on aircraft parts implemented to encourage local maintenance hubs.

    ·         Gender Inclusion: Women form 13–18% of pilots—among the world’s highest. DGCA aims for 25% female aviation workforce by 2025.

    ·         Air Cargo Expansion: 8 million metric tonnes handled in FY24; 10% YoY growth; reforms in warehousing and customs underway.

    ·         Diplomatic Push: Hosted the 2nd Asia-Pacific Ministerial Conference on Civil Aviation; culminated in the Delhi Declaration.

    Conclusion:

    Under the visionary leadership of the Ministry of Civil Aviation, India’s aviation sector is set to play a crucial role in the nation’s growth story. From expanding global connectivity and regional access to fostering digital transformation and sustainability, India is steadily building the foundation of a world-class aviation ecosystem.

    These initiatives do more than connect cities—they generate employment, boost tourism, strengthen economic growth, and promote national integration. With clear policy direction and robust implementation, India’s aviation sector is ready to take flight on the journey to Viksit Bharat @2047.

    Main question: To what extent does India’s civil aviation sector reflect the goals of ‘Atmanirbhar Bharat’? Examine the role of domestic manufacturing, MRO services, and FDI in this context.