By A Correspondent

New Delhi: In a move aimed at transforming India into a global aviation manufacturing hub, the government is considering granting “infrastructure” status to aircraft manufacturing, a step that could significantly reduce dependence on imports and spur domestic production of passenger and cargo aircraft.

The proposal, currently under inter-ministerial consultation, is expected to attract joint ventures with foreign partners and strengthen India’s position in the global aviation supply chain, an Indian media report said.

The move comes at a time when regional air connectivity in India has grown rapidly, backed by initiatives such as the ‘Ude Desh ka Aam Naagrik’ (UDAN) scheme, which has dramatically expanded the number of operational airports and routes.

With air travel demand projected to soar in the coming decade, the government aims to develop a robust domestic manufacturing base to meet the needs of both civilian and defence aviation sectors.

If aircraft manufacturing is included in the Harmonised Master List (HML) of Infrastructure, it will open the door to a range of targeted financial and policy incentives.

These include long-term concessional financing, access to insurance and pension funds, simplified external commercial borrowings, and tax benefits, all of which are expected to make the sector more attractive to investors.

The HML, which currently covers five key sectors and 38 sub-sectors, was last updated in September 2025 to include “large ships” under the Transport and Logistics category.

Petroleum refineries are also under consideration for inclusion. The list is periodically revised to align with national initiatives like Make in India, ‘Atmanirbhar Bharat,’ and Sustainable Development Goals.

A key milestone in India’s emerging aircraft manufacturing ecosystem is the Airbus-Tata Advanced Systems Limited (TASL) partnership, which is producing C295 tactical transport aircraft in Gujarat.

The first Indian-made C295 is expected to roll out in September 2026, with 40 aircraft to be delivered to the Indian Air Force by 2031. Officials see this as the foundation for India’s regional aircraft manufacturing capability, paving the way for future projects involving ATR and Embraer aircraft.

“C295 is the starting point for aircraft manufacturing in India. Now, we have to take it forward—at least regional aircraft manufacturing like ATR and Embraer,” an unnamed official was quoted in the report.

India’s Regional Connectivity Scheme (RCS), launched in 2016, has already operationalised 619 routes and connected 88 airports, benefiting around 15 million passengers.

In 2024 alone, 102 new routes were added, including 20 in the North-East. The government now plans to expand UDAN to 120 new destinations, targeting 40 million additional passengers in the next decade.

The Bharatiya Vayuyan Adhiniyam 2024, which came into force on January 1, 2025, is the Indian law for the regulation and control of designing, manufacturing, maintaining, and sales of passenger and cargo aircraft.

This law, passed by the Indian parliament, complements the efforts by promoting indigenous manufacturing, aligning Indian aviation laws with ICAO standards, and simplifying licensing procedures.

Together, these measures aim to create a globally competitive aviation ecosystem and position India as a key player in the regional and global aircraft manufacturing market.

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