By Willie Walsh, IATA’s Director General
2025 will be an exciting year for Indian aviation. June will be a highlight when Delhi will turn into the global aviation capital as industry leaders from around the world gather for the 81st IATA Annual General Meeting and World Air Transport Summit, sponsored by IndiGo.
Those gathering for the event will be impressed. India’s place in global aviation has changed dramatically over the last decade. With record aircraft orders, impressive growth, and world-class infrastructure developments, India is firmly established as the fourth largest market (domestic & international) for aviation in the world. And within this decade IATA’s own projections point to India rising to be the third largest.
India’s rapidly modernizing and expanding aviation sector is a huge good news story for the country. The aviation industry in India employs 369,700 people directly and generates USD 5.6 billion of economic output. When you include the additional benefits that aviation brings, such as tourism, the number rises to 7.7 million jobs in India and USD 53.6 billion in economic contribution. That is 1.5% of India’s GDP!
Throughout my career, I have been a keen observer of India’s aviation industry. The potential that everybody could see for decades is finally being realized. I have never been more excited about India’s aviation prospects.
Part of the excitement is due to the remake of India’s airline sector. Air India’s rebirth with new ownership is placing renewed focus on its service with exciting developments in its fleet and product offering. And IndiGo has built-up a very impressive footprint across India and regionally. With a world-leading market capitalization, there is enormous confidence in its prospects.
India’s consumers have never been so well-served by its domestic carriers – with a rapidly expanding network, additional frequencies and connections, and growing competition. And with gateway airport capacity expansions in Delhi, Mumbai, Bangalore and Hyderabad, along with the imminent commissioning of second airports in Delhi and Mumbai – before IATA’s AGM in June – the potential for further aviation development is well-laid.
Critically, India has the talent needed to achieve a growing future, unlike many parts of the world which are facing some challenges. With the highest proportion of female commercial pilots in service, India clearly demonstrates that aviation is a solid career choice regardless of gender. And more great jobs will be created as India recognizes the opportunity for greater investment in maintenance, repair and overhaul facilities.
We are also seeing policy measures by the Indian government, and the Civil Aviation Ministry in particular, that are supporting future success. There are several examples.
Clarity was established with regard to the rights of aircraft lessors in the context of India’s bankruptcy laws – and an impending parliamentary bill ratifying and aligning India’s stance with international conventions will help with predictability and consistency.
Airline objections against overreach by India’s GST investigation agencies were addressed. The government exempted the import of services into India between airline HQs and their local branches, respecting international conventions.
AERA—the Airports Economic Regulatory Authority of India —is establishing a track record of countering the natural monopolistic behavior of airports and protecting consumer interest.
While we can truly celebrate these achievements, we must not take for granted the continued success of India’s aviation future. There is more work to be done. In particular, I would highlight three areas: costs, airspace and sustainability.
Costs
Aviation is not a high margin industry. At the global level, the net profit margin is just 3.6%. So every cost, charge, and tax matters. India would do well to look at rationalizing fuel (ATF) costs; easing out some of the complex compliance and regulatory burdens for the industry; and continued oversight on airport user charges and their linkage to service and performance standards.
Airspace
The amazing developments in India’s airport infrastructure need to be matched with developments in India’s airspace. With thousands of aircraft due to join India’s fleet in the coming years, investments to further modernize airspace management are critical—in particular for oceanic and continental airspace. India must not follow the underinvestment example of Europe which results in widespread inefficiency.
Sustainability
Airlines’ global commitment to achieve net zero by 2050 is determined and firm. We expect the bulk of aviation’s decarbonization to be achieved with sustainable aviation fuel (SAF), which is a real opportunity for India. India is the third largest ethanol producer and consumer in the world. This is proof of the potential for it to become a key SAF producer utilizing the Alcohol-to-Jet (AtJ) pathway. This would contribute to India’s energy security, propel the aviation sector’s growth and enhance India’s hub status in the region—delivering enormous social and economic benefits for India’s development.
Bringing the IATA AGM and World Air Transport Summit to Delhi in June is sure to be a highlight for the global aviation community. It is an opportunity for India to cement its rise in global aviation by continuing to put in a policy and economic environment that will realize, and most likely exceed, the potential that we all see for aviation in India.
Content Courtesy: IATA ( This feature is sourced from IATA website and published unedited on as it is basis with due courtesy. IATA is organising its AGM hosted by IndiGo in June in New Delhi, Aviation World as an accredited media has published this content as part of the information purpose only.)
