§1How big it is

§2Ways to get started

  • Drone services for crop spraying, survey and inspection (needs Remote Pilot Certificate)
  • Drone pilot training school (DGCA-authorised)
  • Ground handling sub-services, airport retail and food outlets (by tender)
  • Aviation spares trading and component repair shop
  • Air cargo and freight forwarding agency

See the Business Encyclopedia

§3Hubs and clusters

  • Hyderabad (Telangana) - Safran LEAP engine MRO and Safran Aircraft Engine Services (MoCA Year End Review 2025)

§4Licences and registration

  1. Scheduled / non-scheduled operator permit (Air Operator Certificate) from DGCA after MoCA NOC
  2. DGCA approval as maintenance organisation (CAR-145) for MRO
  3. BCAS security clearance for ground handling, cargo and airport services
  4. Drones: registration and Unique Identification Number on the DigitalSky platform, type certificate, and Remote Pilot Certificate from a DGCA-authorised school (Drone Rules, 2021)
  5. DGCA approval for Flying Training Organisation
  6. Udyam Registration (MSME) - free, online, PAN + Aadhaar based
  7. GST registration (mandatory above turnover threshold or for inter-state supply)
  8. Shops & Establishments registration or Factory Licence (Factories Act) depending on set-up
  9. State Pollution Control Board Consent to Establish / Operate per CPCB 2025 Red/Orange/Green/White/Blue category (White exempt)
  10. IEC - Importer Exporter Code from DGFT (only if importing or exporting)

§5Regulators

  • Ministry of Civil Aviation (MoCA)
  • DGCA - airline permits, aircraft airworthiness, pilot licences, MRO (CAR-145) and flying school approvals, drone pilot certification
  • Bureau of Civil Aviation Security (BCAS) - security clearance for airport service providers
  • Airports Authority of India (AAI); Airports Economic Regulatory Authority (AERA) - tariffs at major airports
  • Aircraft Accident Investigation Bureau (AAIB)

§6Government help

  • UDAN - Regional Connectivity Scheme (Viability Gap Funding to airlines); to continue beyond April 2027 through an Expanded UDAN Framework with about 120 new destinations [MoCA YER 2025]
  • PLI Scheme for Drones and Drone Components (MoCA)
  • Protection of Interest in Aircraft Objects Act, 2025 - lowers aircraft leasing cost [MoCA YER 2025]
  • GST on drones cut to a uniform 5% [MoCA YER 2025]
  • Cross-sector schemes: Udyam-linked MSME benefits, PMEGP, CGTMSE credit guarantee, Stand-Up India, Startup India (DPIIT recognition), RoDTEP / duty drawback and Export Promotion Mission for exporters

All schemes

§7For exports

  • EEPC India (aircraft parts and engineering services)
  • DGFT

§8Pros and cons

Merits

  • Domestic traffic keeps setting records - 5,38,429 passengers in one day in Nov 2025 [MoCA YER 2025]
  • UDAN keeps opening small airports; Rs 4,465 crore VGF already paid [MoCA YER 2025]
  • Drones got a 5% GST rate and a PLI scheme - easier low-capital entry [MoCA YER 2025]

Demerits

  • Airlines and MRO need very high capital and long DGCA approvals
  • Security clearance can be revoked on national-security grounds, as BCAS did for Celebi in May 2025 [MoCA YER 2025]
  • Fares can be capped by the ministry during disruptions, as during the IndiGo operational disruption in 2025 [MoCA YER 2025]
  • Drone flying is restricted in red / yellow zones and needs permissions

Sources

  1. PIB: Ministry of Civil Aviation Year End Review 2025 (21 Jan 2026)