Fri Jan 31 05:31:09 UTC 2025: ## India’s Aviation Boom: Poised for Global Leadership by 2027
**NEW DELHI** – India’s burgeoning aviation and aerospace sector is poised to propel the nation to the world’s third-largest economy as early as 2027, according to Vikram Rai, South Asia CEO of GE Aerospace. This prediction is fueled by the sector’s impressive growth, driven by increased infrastructure, a rising middle class, and strategic government initiatives.
India’s impressive economic climb, from 10th to 5th largest GDP globally since 2014, has been significantly aided by aviation and aerospace. The sector’s contribution to GDP has tripled, from 3% to 7% in the last decade, fueled by a massive expansion in airports (from 74 to 157), a three-fold increase in domestic passengers, and the successful privatization of Air India. This rapid growth is further evidenced by the over 1,700 aircraft on order by 2028, compared to approximately 800 currently in operation.
Rai highlights the sector’s high multiplier effect – every ₹1,000 crore invested generates over ₹3,100 crore in return, creating significant direct and indirect employment. Drawing parallels with China’s aviation growth over the past three decades, Rai predicts India’s aviation sector will play a crucial role in adding $1 trillion to its GDP by 2027.
However, realizing this potential requires strategic policy changes. The author suggests a government-backed credit guarantee scheme to support regional airlines, emphasizing the need for affordable air travel to compete with rail and road. Further, he stresses the importance of moving up the aerospace manufacturing value chain, advocating for revisiting performance-linked incentive (PLI) schemes and attracting global aircraft manufacturers to set up factories in India.
The Maintenance, Repair, and Operations (MRO) sector is identified as the next major growth area. With government initiatives such as establishing MRO hubs as free trade zones and offering tax incentives, India aims to meet 90% of its domestic MRO needs by 2028. The recent acquisition of Air Works Group by the Adani Group underscores the growing interest in this segment.
Addressing the skills gap is also crucial. Rai highlights the need for a comprehensive government-supported skilling initiative to train thousands of engineers and technicians to meet the industry’s growing demand for skilled labor.
In conclusion, Rai urges the Indian government to capitalize on this “golden moment” and leverage the aviation and aerospace sector’s potential to accelerate the nation’s economic growth and solidify its position on the global stage.
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