§1How big it is
Airlines in India carried 5,38,429 domestic passengers in a single day on November 23, 2025 - the highest single-day traffic in history - on 3,356 flights
PIB: Ministry of Civil Aviation Year End Review 2025 (21 Jan 2026)Under UDAN, 657 routes have been operationalized connecting 93 unserved and underserved airports, including 15 heliports and two water aerodromes, facilitating over 1.59 crore passengers through 3.34 lakh UDAN flights
PIB: Ministry of Civil Aviation Year End Review 2025 (21 Jan 2026)Government has disbursed more than Rs 4,465 crore as Viability Gap Funding and invested Rs 4,639 crore in airport development under RCS-UDAN
PIB: Ministry of Civil Aviation Year End Review 2025 (21 Jan 2026)DGCA issued 1,628 Commercial Pilot Licenses in 2024, an all-time high
PIB: Ministry of Civil Aviation Year End Review 2025 (21 Jan 2026)GST on all drones made uniform at 5% (earlier 18% for drones with integrated cameras and 28% for personal-use drones)
PIB: Ministry of Civil Aviation Year End Review 2025 (21 Jan 2026)
§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
§3Hubs and clusters
- Hyderabad (Telangana) - Safran LEAP engine MRO and Safran Aircraft Engine Services (MoCA Year End Review 2025)
§4Licences and registration
- Scheduled / non-scheduled operator permit (Air Operator Certificate) from DGCA after MoCA NOC
- DGCA approval as maintenance organisation (CAR-145) for MRO
- BCAS security clearance for ground handling, cargo and airport services
- Drones: registration and Unique Identification Number on the DigitalSky platform, type certificate, and Remote Pilot Certificate from a DGCA-authorised school (Drone Rules, 2021)
- DGCA approval for Flying Training Organisation
- Udyam Registration (MSME) - free, online, PAN + Aadhaar based
- GST registration (mandatory above turnover threshold or for inter-state supply)
- Shops & Establishments registration or Factory Licence (Factories Act) depending on set-up
- State Pollution Control Board Consent to Establish / Operate per CPCB 2025 Red/Orange/Green/White/Blue category (White exempt)
- 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
§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
