India’s Expanding Aviation Market Sparks Renewed Push for Home-Grown…

Sarah J · 2026-01-09T17:08:35.000Z

India is one of the world’s fastest-growing aviation markets, driven by rising incomes, expanding connectivity and surging passenger demand. The country’s two largest airlines, IndiGo and Air India, together control more than 90% of the domestic market and have placed orders for nearly 1,500 aircraft over the next decade. This unprecedented expansion highlights India’s growing appetite for air travel but also exposes a critical dependency on global aircraft manufacturers. Currently, Boeing and Airbus dominate the global aircraft market, supplying the vast majority of commercial planes worldwide. However, both manufacturers are grappling with historically high delivery backlogs, which are expected to delay aircraft deliveries for several airlines, including those in India. These constraints have reignited a long-standing debate: should India attempt to build its own passenger aircraft to meet future demand? The question gained renewed attention in October, when India and Russia signed an initial agreement to manufacture the SJ-100 passenger aircraft in India. The deal raised hopes that domestic aircraft production could finally take off. The SJ-100 is a twin-engine regional jet capable of carrying up to 103 passengers and is already in service with several Russian airlines. Indian officials have described the aircraft as a potential game-changer, particularly for short-haul routes. However, the proposal faces significant challenges. Experts have raised concerns about the cost, scalability and overall feasibility of manufacturing the aircraft in India. One key issue is whether the Russian manufacturer can quickly establish and scale production facilities in the country. Although around 200 SJ-100 aircraft were delivered between 2008 and 2020, production was severely disrupted after Russia’s war in Ukraine led to Western sanctions. These sanctions cut off access to critical components, forcing the manufacturer to replace dozens of systems and produce an import-substituted version of the aircraft. As a result, European aviation regulators withdrew certification, effectively barring the aircraft from European airspace. India’s ambition to build passenger aircraft is not new. In 1959, the government established the National Aerospace Laboratories to develop small and medium civil aircraft. While the organisation succeeded in building small trainer planes, larger passenger aircraft have remained elusive. In the 1960s, Hindustan Aeronautics Limited manufactured UK-designed Avro aircraft under licence, which served both commercial and military purposes. Later, in the 1980s, India partnered with a German firm to produce a small passenger aircraft, some of which are still used in limited roles today. #StartupEuropeIndiaNetwork #India #Aviation #AircraftManufacturing #CivilAviation #MarketExpansion #Infrastructure #Technology #Manufacturing #Aerospace #MakeInIndia #Science #AI

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India’s Expanding Aviation Market Sparks Renewed Push for Home-Grown… | SEINET