The government expects India’s rapidly growing air travel demand and sustained investment in aviation infrastructure to encourage the entry of new airlines while supporting the expansion of existing carriers.
Civil Aviation Minister K. Ram Mohan Naidu said daily passenger traffic of over five lakh has now become the new normal, reflecting the strong growth in domestic aviation. He added that the government’s planned investment of INR 20,000–30,000 crore in the sector over the next decade, along with the modified UDAN scheme and Viability Gap Funding for regional routes, would provide greater confidence to airlines.
The minister said the government remains open to policy measures that improve competition, expand capacity and enhance connectivity. He also welcomed the growth of airlines such as Akasa Air and expressed hope that more carriers would scale up to meet rising passenger demand.
On aircraft manufacturing, Naidu said India is steadily progressing towards becoming an aviation manufacturing hub. He highlighted the C-295 programme in Vadodara, Embraer’s plans to establish a final assembly line in India, partnerships involving Hindustan Aeronautics Limited for regional aircraft, the successful design completion of the 19-seater SARAS aircraft by CSIR-NAL, the test flight of HAL’s civil helicopter Dhruv NG, and the inauguration of the Airbus-Tata H125 final assembly line.
He added that India’s expanding aircraft component manufacturing ecosystem, coupled with policy support under the Bharatiya Vayuyan Adhiniyam and the Atmanirbhar Bharat vision, is strengthening the country’s position as a destination for aircraft design, manufacturing, operations and maintenance.