Join India on its path toward a $7 trillion growth milestone.
ValueImpakt is a premier Foreign Portfolio Investment (FPI) firm that facilitates wealth creation for European investors by leveraging the potential of Indian equity market. India, a key emerging market in the world, has grown consistently over the last two decades, offering sound returns to investors globally. Our close association with marquee financial institutions in India, deep understanding of its market landscape along with futuristic investment strategies put us in a good stead to be your preferred investment partner.
The civil aviation industry in India has seen tremendous growth over the past three years, becoming one of the country's fastest-growing sectors. It can be categorized into three main segments: scheduled air transport services (domestic and international airlines), non-scheduled air transport services (charter operators and air taxi operators), and air cargo services (transportation of cargo and mail). Domestic traffic accounts for approximately 69% of total airline traffic in South Asia, and by 2023, India's airport capacity is projected to handle 1 billion trips annually.
The India Aviation Market size is estimated at USD 14.78 billion in 2025, and is expected to reach USD 26.08 billion by 2030, growing at a CAGR of 12.03% during the forecast period (2025-2030).
The growing working-age population and expanding middle class in India are expected to significantly drive demand in the aviation sector. The country is poised to become the third-largest aviation market by 2024 in terms of passenger numbers. Additionally, India is projected to need over 2,200 aircraft by 2042 to meet this increasing demand.
Six international airports have been completed under public-private partnerships (PPP), with the aviation sector anticipating investments worth USD 25 billion by 2027. The Ministry of Civil Aviation is also working on PPP models for the privatization of 25 airports under the National Monetization Pipeline.
Under the current FDI Policy, 100% Foreign Direct Investment (FDI) is allowed in scheduled Air Transport Services/Domestic Scheduled Passenger Airlines. This is automatically permitted up to 49%, and requires government approval beyond 49%. However, for Non-Resident Indians (NRIs), 100% FDI is allowed under the automatic route in Scheduled Air Transport Services/Domestic Scheduled Passenger Airlines.
Here are some stock stories that highlight the growth and potential of the aviation industry in India:
InterGlobe Aviation (IndiGo): As the largest airline in India, IndiGo has consistently maintained its market leadership through operational efficiency and a low-cost model. The airline has recently introduced fuel-efficient aircraft to cut costs and reduce its environmental footprint. IndiGo's focus on cost efficiency and an extensive network has made it a favorite among investors.
SpiceJet: Another prominent low-cost carrier, SpiceJet has focused on affordable fares and regional connectivity. Despite facing financial challenges in the past, SpiceJet has demonstrated resilience and is now expanding its international operations.
Global Vectra Helicorp: This company is a key player in the helicopter services sector in India. With the increasing demand for air travel and the government's push for regional connectivity, Global Vectra Helicorp is well-positioned to benefit from the growing aviation market.
Crisil Ratings on MRO Industry: The Indian aircraft maintenance, repair, and overhaul (MRO) industry is expected to see a 50% topline growth in FY26. This growth is driven by the expanding fleet size of airline operators and the reduction in GST on aircraft components and services. This positions domestic MRO players more competitively with their overseas competitors. By 2028, the MRO industry is likely to grow over USD 2.4 billion from USD 800 million in 2018.
Budget 2025 Initiatives: The upcoming budget includes plans to launch two new airports – Jewar and Navi Mumbai – with capacities to handle millions of passengers. This expansion is expected to boost competition and facilities in the sector, providing more opportunities for aviation-related stocks.
These stories reflect the dynamic and promising nature of the aviation industry in India, making it an attractive sector for investors.
To leverage the opportunities arising from India’s growth trajectory, please connect with ValueImpakt AG. ValueImpakt AG offers investment opportunities for European investors who seek to capitalize on the growing Indian economy, and at the same time, it supports “Autism Switzerland's” planned initiatives to improve living conditions for individuals with autism.
Disclaimer: The content is intended solely for general informational purposes and should not be interpreted as financial advice.