By Chaitali Bag
New Delhi recently hosted the inaugural ceremony of the French Aerospace Industries Association’s (GIFAS) five-day visit to India, aimed at enhancing collaboration in the crucial aerospace sector. The French delegation comprised 100 senior representatives from over 60 companies, including seven prime contractors, 20 equipment manufacturers, 29 micro, small, and medium enterprises (MSMEs), and four start-ups, thereby encompassing a comprehensive range of the French aerospace industry. Notable participants included industry leaders such as Airbus, Dassault Aviation, Safran, and Thales, all of whom expressed a strong interest in establishing new partnerships with Indian firms to expand their market presence and fortify their collaborative efforts in aerospace, civil aviation, space, and defence.
The Minister of Civil Aviation Kinjarapu Ram Mohan Naidu graced the event, extended a warm welcome to attendees and highlighted India as a land teeming with potential in various sectors, particularly aviation, defence, and aerospace. He lauded the Indian Space Research Organisation (ISRO) for its remarkable achievements, notably the success of the Chandrayaan-3 and Aditya L1 missions, which have solidified India’s role in the global space exploration community. He also acknowledged the efforts of the French Aerospace Industries Association (GIFAS) in enhancing partnerships between the aerospace industries of India and France and celebrated the signing of a Memorandum of Understanding (MoU) as a significant milestone that fosters innovation, investment, and mutual growth.
The relationship between India and France, characterized by shared values of respect and trust, has seen substantial progress, particularly in the aerospace and defence sectors. The Minister emphasized the complementary strengths of both nations—France’s technological expertise coupled with India’s vast market potential—as a powerful combination that can lead to transformative collaboration. With India’s civil aviation sector expanding rapidly, evidenced by the doubling of its airports and an exponential increase in domestic air passengers, he asserted that the partnership offers significant opportunities for growth in this sector.
Looking towards the future, the Minister outlined a vision aligned with the Horizon 2047 agenda, which encapsulates ambitious goals for cooperation in various domains, including skill development and academic exchanges. This collaborative spirit is crucial for realizing the immense potential of the civil aviation market. Overall, the context highlights a robust bilateral relationship aimed at achieving significant advancements in aviation and aerospace, with vast opportunities for all stakeholders involved.
The Minister asserted that the aviation ecosystem in India is undergoing a significant transformation driven by increasing demand for air traffic management, sustainability, and maintenance, repair, and overhaul (MRO) services. The Indian government is actively pursuing initiatives to establish the country as a global aviation hub, with projections indicating that domestic air passenger traffic could soar to 300 million by 2030. To support this growth, the government is allocating approximately $11 billion for the construction of new airports and the expansion of existing facilities. According to the recent OEGS Megahub report 2024, India’s major metropolitan airports are solidifying their positions as global mega hubs, with Delhi Airport ranking 24th and Mumbai Airport at 44th in scheduled airline capacity. The overall scheduled airline capacity from India has surged by nearly 9% this year, providing 240 million seats in both domestic and international markets. With a population exceeding 1.4 billion and a vast geographical spread, India’s air traffic is poised for exponential growth.
The government has implemented critical reforms to foster a business-friendly environment within the aviation sector, notably liberalizing foreign direct investment (FDI) in civil aviation, now permitting up to 100% FDI in scheduled airlines through automatic routes. Furthermore, the Lok Sabha has passed a landmark bill to replace the Aircraft Act of 1934, incorporating design, maintenance, and manufacturing aspects of aircraft in India, which aligns with initiatives like Atmanirbhar Bharat and Make in India. To enhance the MRO landscape, the government has applied a uniform Goods and Services Tax (GST) rate of 5% on aircraft components, potentially saving the airline industry between ₹1,000 to ₹1,200 crore annually, with expectations of doubling savings by 2030. Other beneficial measures include extending the export period for goods imported for repairs from six months to one year and increasing the re-import time limit for goods under warranty from three to five years. These actions collectively position India as a competitive MRO hub.
A fundamental component of this evolution is the Regional Connectivity Scheme (UDAN), envisioned by Prime Minister Narendra Modi, which aims to integrate remote and underserved regions into the mainstream aviation sector. The initiative has successfully increased operational routes under UDAN from 48 in 2017 to an impressive 538 today, facilitating over 2.8 lakh flights and enhancing connections to international destinations. The rapid expansion of airport infrastructure, including greenfield airports and modernizations of existing metro hubs, underscores India’s commitment to a robust aviation future. The UDAN scheme has significantly enhanced domestic air travel in India while simultaneously fostering growth in the Maintenance, Repair, and Overhaul (MRO) sector. This initiative reflects the country’s dedication to making air travel more affordable, comfortable, and accessible for all citizens, even in remote areas. By integrating helicopters, seaplanes, and wide-body aircraft into the scheme, India aims to ensure that every citizen can experience the joy of flying, irrespective of their geographical location.
Naidu confirmed that under the visionary leadership of Prime Minister Narendra Modi, India’s aviation sector has undergone a remarkable transformation, democratizing air travel for the masses. In this context, the Indo-French 2047 roadmap is rooted in a collaborative approach focused on environmental sustainability. India has made commendable progress towards carbon neutrality, with 73 out of 157 airports now operating on green energy, positioning the country as a leader in this global endeavour. For instance, Cochin International Airport, the world’s first fully solar-powered airport, has gained recognition by winning the UN Champions of Earth award in 2018.
India’s aspirations for future airport projects align with the Prime Minister’s commitment to fostering decarbonized energy solutions. Additionally, India has ample resources for producing sustainable aviation fuel (SAF), and there exists a significant opportunity for collaboration with France, which has effectively integrated SAF into its aviation operations. This partnership can leverage India’s supply chain capabilities alongside France’s operational expertise to establish a robust global SAF supply network.
The collaboration between India and France in the aviation sphere exemplifies how leveraging India’s vast talent pool can drive innovation and excellence. Major international players like Airbus and Safran are making investments in India, contributing to skill development and manufacturing. As India’s economy continues to expand, backed by a skilled youth demographic, both nations are poised to set new benchmarks in global aviation excellence.
The Indian government’s commitment to expanding infrastructure and promoting sustainability positions the country as a gateway for global collaboration, commerce, and connectivity. As India approaches its goal of becoming a global aviation hub, the anticipated outcomes from the upcoming India-France seminar promise to benefit not only the two nations but also enhance the global aviation sector as a whole.
