Prime Minister Narendra Modi highlighted the fast-growing Indian aviation sector as an “excellent investment opportunity” for global companies on Monday. He also touched upon the open and supportive policy ecosystem of the country while addressing hundreds of global aviation leaders at an airline industry summit. The PM noted that domestic carriers had placed orders for more than 2,000 new jets in recent times calling it “just the start”.
”We want the world to see India not just as an aviation market but also as a value chain leader…Our direction is right, our speed is right…So, we are confident that we will continue to move forward rapidly…India has become the third-largest domestic aviation market in the world,” Modi said.
He also said that efforts were being made to turn India into a global manufacturing hub and pointed to the emergence of maintenance, repair, and overhaul (MRO) as a sunrise sector. The PM noted that India had scaled up from 96 MRO facilities to 154 such outlets over the past decade. Meanwhile 100% FDI under the automatic route, GST reduction, and tax rationalisation measures have given fresh momentum to the MRO sector.
Modi also touched upon various legislative and policy changes that have been made in recent years — including that Protection of Interest in Aircraft Objects Bill passed in Parliament this year which granted legal authority to the Cape Town Convention in India. Modi noted during his address that the new Act opens fresh 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, presenting a significant investment opportunity for major international aviation companies,” he said.