The government is making concerted efforts to develop a manufacturing ecosystem for trainer aircraft and seaplanes, as part of a broader push to indigenise production and meet the country’s surging demand for pilots and regional connectivity.

The move was announced on Wednesday by Civil Aviation Minister K Rammohan Naidu, who said the initiative will be linked to the rapid expansion of pilot training capacity and the need for a steady domestic supply of training platforms.

Policy backdrop: Budget incentives and 5-year roadmap

This push builds on Budget 2026–27 measures that exempt basic customs duty on components and parts required for the manufacture of civilian and training aircraft, and propose incentives to promote indigenous manufacturing of seaplanes alongside a viability gap funding (VGF) scheme to support operations on routes that are not immediately commercially viable.

The longer-term vision is being operationalised through a dedicated Special Purpose Vehicle (SPV) to create an ecosystem for India-made aircraft over the next five years, with a focus on design, component production and final assembly.

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Training Infrastructure: 11 New FTOs to Boost Cadet Capacity

To boost pilot training activities in the country, Naidu said the Civil Aviation ministry is discussing with aviation regulator DGCA to improve infrastructure facilities at the Flying Training Organisations (FTOs) in the country. On Wednesday, the minister awarded Letters of Intent to 11 FTOs that will be setting up their training bases at seven AAI airports at a function in the national capital.

Currently, there are 41 FTOs having 63 training bases. With the addition of 11 new FTOs, the annual pilot training capacity is expected to increase by 750 cadets per year, AAI said in a release.

Naidu said efforts are on to develop the manufacturing ecosystem for trainer aircraft and seaplanes. “India has already witnessed the establishment of six new FTOs over the last two years. During this period, the number of training aircraft available with Indian FTOs has increased from 324 to 385, resulting in a 25 per cent rise in annual flying hours across the pilot training ecosystem,” Naidu said.

According to him, the number of Commercial Pilot Licences (CPLs) issued increased from 1,347 in 2024 to 1,652 in 2025, the highest number issued in the last decade and this year, it is expected to witness a further increase.

The demand-supply gap: 25,000 pilots by 2035

“Indian airlines currently have 1,640 aircraft on order, and nearly 500 aircraft are expected to be inducted over the next five years. Meeting this unprecedented growth requires a strong domestic pipeline of trained aviation professionals. Our vision is clear – Train in India, Fly in India,” he said.

Civil Aviation Secretary Samir Kumar Sinha said the country is estimated to need 25,000 additional pilots by 2035, which means issuing around 2,500 commercial pilot licences every year. Indian airlines are to add around 1,640 new aircraft to their fleets in the coming years and out of them, 500 planes are projected to be taken by the carriers in the next 5 years.

This is the “golden phase” of Indian aviation, Sinha said and highlighted various initiatives taken to develop a complete aviation ecosystem in the country. The scale of airline orders and the pace of fleet induction underscore the urgency of scaling up domestic training capacity—and, by extension, the availability of trainer aircraft and supporting infrastructure.

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From policy to production: Seaplanes, trainers and last-mile connectivity

The manufacturing push is closely tied to connectivity goals. Budget proposals to incentivise local production of seaplanes, backed by a VGF scheme, aim to enhance last-mile and remote connectivity and promote tourism by enabling operations on water routes that are not immediately commercially viable. Simultaneously, the government’s focus on trainer aircraft manufacturing seeks to reduce import dependence for training fleets, lower costs for FTOs and create a stable domestic supply chain for components, maintenance and upgrades.

Progress is already visible on the ground. A private-sector trainer aircraft manufacturing facility is being set up in Hisar, Haryana, in collaboration with Diamond Aircraft Industries, targeting local assembly of DA40 NG trainers and an annual production capacity of about 100 aircraft to meet domestic demand.

In the public sector, HAL is ramping up production of the indigenous HTT-40 basic trainer for the Indian Air Force, with deliveries now underway and annual output expected to rise to around 20 aircraft as the line matures. These moves signal a shift from pure imports to a mixed model of licensed assembly and indigenous design, creating a deeper vendor base and skills pool.

Digital enablement: FTO IFR slot booking App

Naidu also launched the FTO IFR Slot Booking App, a digital tool intended to streamline instrument flight rules (IFR) slot allocation for training organisations, reduce turnaround time and improve utilisation of airspace and airport infrastructure for pilot training.

The effectiveness of this ecosystem will hinge on how quickly the SPV can translate policy incentives into tangible production lines, local assembly of trainer aircraft and seaplanes, and cost reductions for FTOs and operators. If executed well, the initiative can help India move from being a large importer of training platforms to a net manufacturer, aligning pilot supply with fleet growth and strengthening the “Train in India, Fly in India” vision.