Not just ‘Make in India’ – PM Modi wants global aviators to ‘Design in India’ too

Expanding Horizons: PM Modi’s Vision for Global Aviation in India

ET Online Last Updated: Jun 02, 2025, 05:48:00 PM IST

Prime Minister Modi encourages international aviation companies to invest in the design and manufacturing sectors within India, highlighting the country’s investment-friendly policies and rapidly growing aviation market. He pointed out considerable opportunities within the Maintenance, Repair, and Overhaul (MRO) industry, which is backed by 100% Foreign Direct Investment (FDI) and reduced Goods and Services Tax (GST). Modi’s vision aims to establish India as a prominent global aviation hub for design, production, and maintenance.

A visual representation of PM Modi's vision for the aviation sector in India

Prime Minister Narendra Modi, during a summit with global aviation leaders, sought active participation from international companies in designing as well as manufacturing aircraft and related components in India. He highlighted the country’s favorable tax environment and proactive investment policies as major incentives. Modi emphasized the MRO sector as a significant growth area seeking to thrive under the support of 100% FDI.

“We have allowed 100% FDI through an automatic route and reduced GST to boost the MRO sector,” Modi remarked, indicating how these measures are drawing more investments and enhancing India’s competitiveness in aircraft servicing.

Amid rising air traffic and record orders from Indian carriers, the Prime Minister reiterated India’s goal to evolve into a global aviation hub—expanding beyond just the operational aspects to include the design and manufacture of aircraft.

Ambitious Plans for Airport Expansion

The government has ambitious plans, with Civil Aviation Minister K. Rammohan Naidu announcing the construction of 50 additional airports over the next five years, aiming for a total of over 350 by 2047 as part of the Viksit Bharat initiative. With a domestic air traffic increase of 30% and growth surpassing global averages, Naidu welcomed international airlines to explore India’s burgeoning regional aviation industry. He shared that India’s aviation sector could potentially reach a valuation of $10 billion within 10 to 15 years, buoyed by domestic manufacturing and the initiatives under Make in India.