Indian aviation is in a decisive phase of growth, marked by rising demand, sustained capacity creation, and accelerated ecosystem development. Over the past decade, policy, regulatory, and institutional interventions such as the National Civil Aviation Policy 2016, the UDAN scheme, deregulation, and sustained improvements in ease of doing business have reshaped the operating environment and enabled unprecedented expansion.

      India is now the world’s third-largest domestic aviation market and is on track to become the third-largest globally, supported by rapid fleet induction and record aircraft orders. The next stage requires a fundamental evolution in aviation from its traditional role as a facilitator of mobility to become a strategic engine of economic growth, employment, and global competitiveness. The overarching objective is to transform India from a large aviation market into a globally competitive aviation ecosystem, with integrated capabilities across manufacturing, maintenance, operations, and innovation.

      Against this context, this report sets out nine strategic themes that together would pave the future of Indian aviation in Viksit Bharat @ 2047. Collectively, they outline an agenda for building an aviation ecosystem that is larger in scale, deeper in domestic capability, globally competitive, and structurally ready for the future.


      Key highlights of the report:

      • Super-connected India

        Enhanced connectivity will be the foundation of India’s aviation growth. By linking smaller cities through dense regional networks and building globally competitive hubs with seamless transfers, and multimodal integration, a Super-Connected India will become a critical node in global aviation flows and a powerful enabler of trade, tourism, and jobs

      • AI powered Indian aviation tech stack

        AI will power India’s aviation leadership unlocking step-change in capacity, reliability, and service quality. A unified Indian aviation tech stack with secure, real‑time data sharing will eliminate operational silos and place AI at the centre of decision‑making driving system efficiency and coordinated operations across the ecosystem

      • Manufacturing

        Manufacturing will anchor India’s global aviation leadership converting scale into a strategic capability. With deeper global partnerships, Industry 4.0‑ready MSMEs, and strong indigenous programmes, India will build a world‑class aerospace ecosystem driving economic value creation, innovation, and high‑skill jobs at scale

      • Maintenance, Repair and Overhaul

        India is scaling its MRO ecosystem at pace, backed by tax and policy reforms that are strengthening competitiveness and investor confidence. By building high‑value engine and component maintenance at scale, enabled by AI‑driven predictive systems, India will deepen specialised capability accelerating its journey towards being a global MRO hub

      • Leasing

        GIFT IFSC is India’s platform to build a globally competitive hub for aviation finance supported by a facilitative regulatory and tax environment. With rising market confidence and the Protection of Interests in Aircraft Objects Bill, 2025 strengthening creditor assurance and improving lease economics, India is deepening its leasing ecosystem to mobilise capital at scale and finance the aviation growth of the future

      • Air cargo

        Air cargo will be a catalytic enabler of Viksit Bharat @ 2047 powering export growth, manufacturing expansion, and deeper integration into global value chains. Integrated cargo ecosystems with end‑to‑end digitisation, automation, and AI‑enabled decision‑making will reduce dwell times, lower logistics costs, and build globally competitive cargo gateways

      • Skilling

        Skilling at national scale will underpin India’s aviation expansion, converting growth into high‑value jobs across airlines, airports, manufacturing, MRO, and services. An industry‑anchored, future‑ready talent pipeline aligned to digital operations, AI‑enabled workflows, and new technologies will power growth and establish India as an aviation skilling hub

      • Sustainable Aviation Fuel (SAF)

        Sustainable Aviation Fuel is both an imperative and a strategic opportunity for India. India is well positioned to build a competitive SAF industry leveraging local aviation demand, abundant feedstocks, strong refining capacity, deep bioenergy experience, and rising policy momentum.
         

        With scale and the right ecosystem, SAF can meet India’s domestic needs and position India as an exporter to the global aviation industry

      • Advanced Air Mobility (AAM)

        Advanced Air Mobility can unlock a new layer of urban connectivity delivering fast, reliable links across congested and high-value corridors, emergency response and time‑critical logistics. With industry progressing from pilots towards commercialization, readiness for operations while anchoring domestic manufacturing in propulsion, avionics, batteries, composites, and software will enable India to build early leadership in next‑gen mobility


      Paving the future of aviation in Viksit Bharat @ 2047

      Building India’s aviation ecosystem that is larger in scale, deeper in domestic capability, globally competitive, and structurally ready for the future

      Key Contact

      Jodhbir Sachdeva
      Jodhbir Sachdeva

      Associate Partner, Aviation

      KPMG in India

      How can KPMG in India help

      We have a well-defined and robust approach to support our clients effectively across a spectrum of projects in business performance services, transaction services and tax and regulatory services including offset advisory.

      For a more productive and sustainable business future

      KPMG’s Business Consulting professionals we may help you identify and solve the challenges that stand in the way of your growth and progress

      Access our latest insights on Apple or Android devices