The aviation industry in India is witnessing continued expansion, supported by rising passenger air traffic, increasing demand for domestic and international connectivity, and ongoing airport infrastructure development. The expansion of airline fleets, modernization of existing airports, development of new aviation facilities, and growing investments in aviation services are contributing to the industry's growth.

Hyderabad, India, Oct. 23, 2026 (GLOBE NEWSWIRE) -- According to the latest report by Mordor Intelligence, the India aviation market size is projected to grow from USD 16.53 billion in 2026 to USD 18.49 billion in 2027 and reach USD 31.69 billion by 2032, at a CAGR of 11.38% during 2027–2032. Market growth is supported by rising passenger traffic, airport infrastructure expansion, regional connectivity initiatives, fleet modernization, and increasing demand for air cargo services. Higher defense spending is also supporting demand for military aircraft, while local manufacturing and maintenance capabilities are creating opportunities across the aviation supply chain. However, volatile aviation fuel prices, infrastructure limitations at smaller airports, and airline operating costs remain key challenges. Aligning aircraft deliveries with airport capacity, maintenance support, and demand growth will be important for sustaining the expansion of the India aviation market. 

Indian Aviation Market Trends and Drivers 

Modified UDAN Scheme to Expand Regional Aviation Connectivity in India: India’s Modified UDAN scheme aims to strengthen regional air connectivity by developing unserved airstrips into operational airports. The initiative could open new routes, improve access to underserved areas, and create opportunities for aircraft manufacturers and operators. The pace of growth will depend on airport readiness, route viability, and airlines’ ability to sustain services. 

Rising Passenger Traffic and Airport Infrastructure Expansion: The India aviation market is benefiting from recovering passenger demand and expanding airport infrastructure. Growing international travel and improvements in passenger-handling capacity, including new terminal facilities at regional airports, are creating opportunities for airlines to expand services. Continued investment in airport infrastructure will help accommodate rising traffic and support fleet expansion across major and emerging aviation hubs. 

“India’s aviation industry requires a clear view of passenger demand, infrastructure capacity, and competitive developments. Mordor Intelligence’s structured research approach combines market data, industry analysis, and consistent evaluation criteria to support informed business planning and investment decisions.” says Phani Kumar, Senior Research Manager, Mordor Intelligence.    

India Aviation Market Regional Market Dynamics 

Southern India is emerging as a key growth region for the aviation market, supported by rising passenger traffic, stronger international connectivity, and continued airport infrastructure investment. Growing demand at major hubs such as Bengaluru is encouraging airlines to expand routes and capacity. Matching fleet requirements with changing travel demand and network expansion will be important for airlines operating across the region. 

Northern India remains a major hub for the aviation market, supported by strong passenger traffic and expanding airline operations at Delhi’s Indira Gandhi International Airport. Airlines are increasing flight frequencies and strengthening their presence in the region to meet travel demand. Continued growth in passenger volumes and route connectivity is expected to support capacity expansion and create opportunities for aviation service providers. 

India Aviation Industry Segmentation 

By Aircraft Type 

  • Commercial Aviation 
  • General Aviation 
  • Military Aviation 

By Propulsion Technology 

  • Turboprop 
  • Turbofan 
  • Piston Engine 
  • Turboshaft 
  • Others 

By End User 

  • Business and General Aviation Operators 
  • Civil and Commercial Operators 
  • Government and Defense Agencies 

Check out more details and stay updated with the latest industry trends, including the Japanese version for localized insights: https://www.mordorintelligence.com/ja/industry-reports/analysis-of-aviation-industry-in-india?utm_source=globenewswire 

India Aviation Companies 

  • Airbus SE 
  • The Boeing Company 
  • Hindustan Aeronautics Limited (HAL) 
  • ATR 
  • Dassault Aviation 
  • Lockheed Martin Corporation 
  • Leonardo S.p.A. 
  • Bombardier Inc. 
  • Textron Inc. 
  • Embraer S.A. 
  • Tata Advanced Systems Limited 
  • Aeronautical Development Agency 


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Get More Insights: https://www.mordorintelligence.com/industry-reports/hovercraft-market?utm_source=globenewswire 

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About Mordor Intelligence 

Mordor Intelligence is a global market intelligence firm, founded in 2014, helping businesses make informed decisions through data-driven insights, industry expertise, and advanced analytics. With 550+ domain experts and on-ground specialists across 150+ countries, the company delivers comprehensive intelligence across aerospace & defense, agriculture, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, and logistics. 

Its offerings include syndicated industry reports, custom research and advisory, and subscription platforms such as Data Center Intelligence. Mordor Intelligence is ISO 9001:2015 and ISO/IEC 27001:2022 certified, a member of ESOMAR and the Market Research Society of India, and a four-time Great Place to Work® honoree. Learn more at mordorintelligence.com  

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