Civil Aviation Sector  |  Official Website of Invest UP, Government of Uttar Pradesh, India

Sector

Civil Aviation

Quick Menu

INDIA SCENARIO

  • The Civil Aviation sector is an enabler of economic growth and development, and over the last few years, the industry has emerged as one of the fastest growing industries in the country. The sector can be broadly classified into scheduled air transport service and non-scheduled air transport service and air cargo service. While the scheduled air transport service includes domestic and international airlines, non-scheduled air transport service consists of charter operators and air taxi operators. Air cargo service includes air transportation of cargo and mail.
  • The Indian civil aviation industry has recovered fully from the Covid-19 pandemic shock as indicated by the air traffic movement which stood at 327.28 million in FY23 compared to 188.89 million in FY22. Indigo is the largest airline company in India with the highest market share.
  • In India, the Civil Aviation sector is a central subject and all necessary rules & guidelines are made by Government of India. State Governments have very limited role to play in this sector. All scheduled, non-scheduled, state government & private operations are governed and controlled within the rules & guidelines of Govt. of India. The Ministry of Civil Aviation, Government of India is responsible for formulation of national policies and programmes for the development and regulation of the Civil Aviation sector in the country. It is responsible for the administration of the Aircraft Act, 1934, Aircraft Rules, 1937 and various other legislations pertaining to the aviation sector in the country. This Ministry exercises administrative control over attached and autonomous organizations like the Directorate General of Civil Aviation, Bureau of Civil Aviation Security and Indira Gandhi Rashtriya Uran Akademi and affiliated Public Sector Undertakings like Airports Authority of India and Pawan Hans Helicopters Limited.
  • To facilitate the inclusive growth in this sector, Government of India has launched National Civil Aviation Policy 2016 and Regional Connectivity Scheme (RCS) with a vision to connect the underserved as well as unserved airports / airstrips/ locations through incentives from central and state governments. Such airports/locations are marked as RCS airports/locations. All State governments are encouraged to identify the locations as well as the routes and to declare incentives beyond the mandates envisaged in RCS to attract the airlines and start new routes.

UTTAR PRADESH SCENARIO

  • Uttar Pradesh has emerged as a significant player in India's civil aviation sector, leveraging its strategic location, population size, and policy-driven initiatives to become a hub for aviation growth. The state is centrally located and well-connected to key cities like Delhi, enabling efficient domestic and international connectivity. With a population of over 240 million, UP offers a vast consumer and labour market, making it an ideal base for aviation-related investments.
  • The aviation sector in Uttar Pradesh has grown by leaps and bounds in the last 07 years and the state will soon become the only one to boast of 05 international airports in India. The upcoming Noida International Airport at Jewar is set to be India's largest airport upon completion, it will be a major catalyst for regional and international connectivity, cargo operations, and economic activity. The Kushinagar International Airport is a gateway for Buddhist tourism and international travel, enhancing the state’s global tourism appeal, while the Ayodhya Airport promotes religious tourism and regional connectivity in line with the state’s cultural heritage. Apart from this, the state has two other functional airports at Lucknow and Varanasi.

SECTOR HIGHLIGHTS




Content will be available soon

DOMINANT INDUSTRY FORCES

KEY DEVELOPMENT IN THE INDUSTRY

In 2017, Uttar Pradesh had only 04 functional airports (Lucknow, Varanasi, Gorakhpur & Agra) which connected 25 destinations by flight. Currently, 15 airports in the state (Lucknow, Varanasi, Gorakhpur, Agra, Prayagraj, Bareilly, Kanpur, Hindon, Kushinagar, Ayodhya, Aligarh, Azamgarh, Shravasti, Chirakoot & Moradabad) have become functional, connecting more than 80 destinations. There are 04 International airports in Uttar Pradesh and another one is under development in Jewar (Gautam Buddha Nagar). In the last 07 years, 11 airports (Prayagraj, Hindon, Bareilly, Kushinagar, Kanpur, Ayodhya, Aligarh, Azamgarh, Shravasti, Chitrakoot & Moradabad) have been developed by the State Government and 3 more airports (Saharanpur, Agra & Lalitpur) are under development. In the next couple of years, a total of 21 airports (5 international and 16 domestic) will become functional in Uttar Pradesh.

Domestic Passenger Traffic in UP has increased from 87.90 lakh in FY 2019-20 to 102.08 lakh in FY 2023-24. Similarly, International Passenger Traffic in UP has increased from 9.69 lakh in FY 2019-20 to 10.93 lakh in FY 2023-24. Cargo Traffic in UP has also increased from 18,615 Mertic Tons in FY 2019-20 to 25,915 Mertic Tons in FY 2023-24.

KEY INVESTMENT OPPORTUNITIES

  • Airport Infrastructure Development

    Greenfield Airports
    Development of new, modern airports in under-served and emerging regions.

    Airport Modernization
    Upgrading and expanding existing airport terminals, runways, and ancillary infrastructure to handle increasing passenger and cargo traffic.

    Cargo Terminals
    Development of dedicated air cargo hubs to support logistics, e-commerce, and perishable goods transportation.

  • Aircraft Manufacturing & Maintenance, Repair & Overhaul (MRO)

    Aircraft Manufacturing Units
    Opportunities for assembling and manufacturing aircraft components.

    MRO Facilities
    Establishing state-of-the-art facilities for maintenance, repair, and overhaul services for aircraft.

    Airstrip Policy of Government of Uttar Pradesh, 2023
    The policy provides opportunity for use of Govt. of Uttar Pradesh airsrips for different aviation activities like Flying Training Organisation (FTO), Aircraft Maintenance, Repaire and Overhaul (MRO) etc.

  • Regional Connectivity & Airline Services

    Regional Airlines
    Opportunities to launch regional carriers to serve tier-2 and tier-3 cities under the Regional Connectivity Scheme (RCS).

    Charter Services
    Growing demand for private charters, especially for business travel and tourism.

    Cargo Airlines
    Dedicated cargo airlines to support agricultural exports and industrial goods transportation.

    HEMS
    Helicopter Emergency Medical Services

  • Aviation Education & Training

    Pilot Training Academies
    Growing demand for trained pilots with increasing airline operations.

    Technical Training Institutes
    Facilities to train engineers and technicians for MRO, ground handling, and air traffic control.

  • Airport Services & Ground Support

    Fuel Services
    Investments in aviation fuel supply, storage, and refueling infrastructure.

    Ground Handling
    Opportunities in baggage handling, aircraft servicing, and cargo operations.

    Hospitality and Retail
    Expansion of airport lounges, food courts, and retail outlets to enhance passenger experience.

  • Advanced Aviation Tech & Digital interventions

    Smart Airports
    Investing in advanced technologies such as IoT, AI, and biometric systems for passenger processing, security, and operations.

    Air Traffic Management Systems
    Implementation of advanced navigation and surveillance systems to ensure efficient airspace management.

    Drone Technology
    Development of unmanned aerial vehicles (UAVs) and related services for logistics, surveillance, and agriculture.


Nivesh Sarathi Nivesh Mitra