Business Opportunities in Civil Aviation Sector of India

The Indian civil aviation industry has become one of the fastest-growing sectors in the country in the last three years. India has been ranked as the third in the world when it comes to the size of its domestic civil aviation market.

India has laid out the development requirements for the industry within the Vision 2040 strategy document, including an increase of airports that will increase by fivefold.

Partner Agencies 

As part of an aviation safety agreement bilateral that includes airworthiness implementation procedures (BASA IAP) with the FAA together with the Indian Directorate General of Civil Aviation (DGCA) the aviation products are exchangeable. Indian civilian aviation agencies, as well as FAA, continue to investigate ways to strengthen the bilateral relationship.

The US-India Aviation Cooperation Programme (ACP) is an agreement that is a collaboration between Indian as well as U.S. governments, providing an opportunity for cooperation in aviation and generating new business possibilities for U.S. members.

U.S. exporters benefit from exporters from the ACP by working directly in direct collaboration with Indian officials in aviation on initiatives that encourage the collaboration of U.S. and Indian stakeholders in aerospace technology.

  

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Leading Sub-Sectors   

Maintenance Repair and Overhaul (MRO) 

Because of India's increasing fleet of aircraft’s maintenance facilities and maintenance services will require expansion. Around 90% of India's MRO operations take place outside the country and the country is continuing to grow its MRO industry to satisfy the needs of its citizens in addition to serving as a central hub for the region's MRO operations. Geographically, it's situated somewhere between Europe in the European Union and Southeast Asia, as well as being close to its Middle East. Because of the changes to the policy, U.S. companies will be better placed to take part in India's MRO ecosystem growth.

Safety and Security 

Security and safety systems are among the most important priorities of India's plan to build brownfield and greenfield airports across the country.

With the expansion of the civil aviation industry in India and the planned expansion of routes by airlines, the expansion of MRO facilities, as well as the growth of airport infrastructure There are plenty of opportunities to grow the market

The aviation industry has an array of security and safety equipment and solutions.

Navigation and Air Traffic Management Systems 

Also, there is a need for radar systems as well as various air traffic control systems. India has not yet met the ICAO requirement of 100% conformity for navigation equipment based on performance to its airports international.

Human Resource Development  

One of the top industry and government prioritization is training, skills, and the development of human resources. The supply of skilled employees hasn't kept pace with the industry's rapid expansion. The entire aviation industry offers opportunities for training and education providers.

Helicopters  

This is a market that has a lot to offer U.S. firms seeking entry into the market or collaborating on existing businesses, even with obstacles such as limited infrastructure, high prices on spare components, and a dearth of helicopter-training institutes. With the growing demand in medical emergency evacuation (EMS) as well as disaster management missions, as well as search and rescue operations, U.S. firms will gain more opportunities as this sector grows.

Opportunities redefined   

The high demand of the nation for parts and aircraft equipment, its geographical area, expertise in engineering, and cost-effective labor create India an essential market to the top global aircraft OEMs, like Boeing as well as Airbus. Manufacturers are working with Indian suppliers as well as SMEs to satisfy their demands for tier-1 suppliers, and to create an aerospace industry in India.

There are a variety of areas within the civil aviation sector that is experiencing positive growth, such as airport privatization, the creation of brownfield and greenfield airport infrastructure, and the associated technology requirements and expanding MRO facilities, as well as the expansion of staff and pilot training facilities. U.S. exporters will have chances in a broad variety of subsegments.

U.S. suppliers cannot ignore India because of its population and size

The construction of greenfield as well as brownfield airports across India will provide potential to U.S. companies in the areas of airport development and planning, energy-efficient and zero-emission airports, security, and security equipment (including scanners for passengers and cargo) as well as innovative technologies such as touchless airports and passenger ticketing, as well as baggage control systems.

Along with engine spare components and parts workshops tools and testing apparatus, inspecting equipment Auxiliary engines (APUs), and maintenance training, In addition, the MRO sector is a lucrative market that is ideal for U.S. exporters.

In the case of automatic routes, 100% of FDI could be invested in non-scheduled airline transportation services within India.

Through the automatic route, the foreign direct investment could be as high as 100 percent in seaplanes and helicopters.

The automatic route allows 100% of foreign investment direct is allowed for maintenance and repair companies as well as flying training institutes and technical institutes for training.

FDI into Ground Handling Services is permitted up to 100% in the automatic route subject to sectoral regulations.