India’s aviation sector presents significant opportunity for investments: PM Modi at IATA AGM 2025

India’s aviation sector presents a significant investment opportunity for major international aviation companies, Prime Minister Narendra Modi said Monday during his address at IATA's 81st Annual General Meeting and plenary Session of World Air Transport Summit.

The prime minister highlighted India’s remarkable transformation in civil aviation over the past years.

“India has become the third-largest domestic aviation market in the world,” the prime minister said.

Emphasising the success of the UDAN scheme, calling it a golden chapter in Indian civil aviation history, Modi stated that under this initiative, over 15 million passengers have benefited from affordable air travel, enabling many citizens to fly for the first time.

The prime minister remarked that India’s airlines continue to achieve double-digit growth, with 240 million passengers flying annually—surpassing the total population of most countries worldwide. He projected that by 2030, this number is expected to reach 500 million passengers. PM Modi noted that 3.5 million metric tons of cargo are transported by air annually in India and this volume is set to increase to 10 million metric tons by the end of this decade.

Emphasising that these figures are not just statistics but a reflection of India’s immense potential, the prime minister highlighted that India is actively working on a futuristic roadmap to maximise this potential. He underscored India’s investment in “world-class” airport infrastructure, noting that in 2014, the country had 74 operational airports, which has now expanded to 162. PM Modi further remarked that Indian carriers have placed orders for over 2,000 new aircraft, signalling rapid growth in the sector.

“This is just the beginning. India’s aviation sector is at a take-off point, from where it has to make its longest and highest flight,” he said, adding that this transformation will not only transcend geographical boundaries but will also drive sustainability, green mobility, and equitable access globally.

India is among the few nations that are setting new standards in user experience with the help of technology, said PM Modi. “We are moving towards sustainable aviation fuels. I urge IATA members to find out more about DigiYatra app. With the help of facial recognition technology, customers are able to experience seamless travel from airport entry to boarding gate without any need to show papers or ID documents,” he said.

PM Modi said that India’s innovations and experience in serving a large population can benefit many countries. “Digi Yatra stands as a secure and smart solution, serving as a model of inspiration for the Global South,” he added.

Underlining that consistent reforms have been a key driver of India's rapidly expanding aviation sector, the prime minister stressed on India's commitment to becoming a global manufacturing hub, with strategic initiatives supporting this vision. Mentioning that Mission Manufacturing was announced in this year's budget, reinforcing India's focus on industrial growth, PM Modi further highlighted the Protection of Interest in Aircraft Objects Bill, passed in Parliament this year, granting legal authority to the Cape Town Convention in India. The prime minister remarked that this legislation opens new opportunities for global aircraft leasing companies in India. He also pointed to the incentives offered at Gift City, stating that these measures have made India an attractive destination for aircraft leasing.

“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 which presents a significant investment opportunity for major international aviation companies”, said Modi. He highlighted that growth in the aviation sector translates to new flights, new jobs, and new possibilities, noting that the industry is creating expanding opportunities for pilots, crew members, engineers, and ground staff. 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 noted that in 2014, India had 96 MRO facilities, which has now increased to 154 while 100% FDI under the automatic route, GST reduction, and tax rationalisation measures have given fresh momentum to India’s MRO sector. PM Modi outlined India’s goal to establish a $4 billion MRO hub by 2030, reinforcing the nation’s aviation growth strategy.

The prime minister said, from design to delivery, India is becoming an integral part of the global aviation supply chain. He asserted that India’s direction and pace are on the right track, expressing confidence in the nation's continued rapid progress. Modi urged aviation companies to not only embrace 'Make in India' but also 'Design in India', reinforcing the vision of India's leadership in global aviation innovation.

The prime minister underlined that India’s aviation sector is strengthened by its inclusive model, with over 15% of pilots in India are women, which is three times the global average. He emphasised that while the global average of women in cabin crew is around 70%, India's figure stands at 86%.