Aviation

The civil aviation sector has been one of the fastest growing industries in India. India is currently considered the 3rd largest domestic civil aviation market in the world. The year on year growth in the international and the domestic passenger traffic increased to 16.5% reaching a total of 308.8 million individuals, while the domestic passenger traffic increased at a rate of ~18.9%. Although the growth numbers are extremely positive, the sector has a large untapped potential with several growth opportunities, because air transport continues to remain expensive in India. The FDI policy on airports permits 100% FDI in Greenfield Projects and 74% FDI in Brownfield Projects under automatic route
With the advent of the ‘Make in India’ initiative, the government is trying to localise the production of aircraft in India. Government-owned enterprises are also trying to indigenously design and manufacture new regional jet aircraft and helicopters for both defence and private sector. Earlier the focus was on assembling the aircraft in India but in the recent years, there has been a shift from assembling the aircraft to manufacturing the components used in the aircraft by way of acquisition of foreign technology or by foreign suppliers setting up manufacturing facilities in India.