FDI & National Civil Aviation Policy: Bold moves towards golden era of Indian Aviation


With the huge growth in Middle Class Air traffic and low oil prices, the trajectory of Indian Aviation Industry has been pretty much like the take-off of an aircraft. With the growing demands, mammoth job opportunities are also waiting for youth in Aviation sector.

Boom in the Aviation market is evident in following numbers:

  • Exponential growth of 17.62% in the total passenger traffic along with a CAGR of 11.8% in the last 10 years proves that there is a consistent growth in the passenger traffic in Indian market.
  • Similar growth can also be seen in freight traffic which has grown annually at a CAGR of 6.8% in last 10 years.


Indian civil aviation sector undoubtedly has become a trend-setter with low ticket prices and very fast growing Air Traffic. Since there is an overall development in the Aviation from the growth in No. of Airplanes to development of unused airports, expansion in regional connectivity, it will bring jobs of all size from a pilot to AME.

Let’s have a look at the major factors which are fueling already booming Indian Aviation Market and bringing down more and more employment opportunities

  1. National Civil Aviation Policy, 2016: It is the first time in the history of Independent India that an integrated Civil Aviation Policy has been released. Civil Aviation Policy, 2016 drafter keeping in mind Aviation Sector as a whole covering each area. It mainly emphasizes on improvement of regional connectivity, development & modernization of Airports. Developing more facilities for MRO and relaxation in key rules and regulations wherever required. Key Highlights that can be taken from the policy are:
  • Emphasis of Regional Connectivity by revival of un-used airports as No-frill airports. Selection of airports to be revived will be done on the basis of demands. Better regional connectivity will surely lead to more business opportunities in this tier- II & tier-III cities.
  • Amendment in 5/20 rule: As per the old 5/20 rule, an airline could only commence International operations if it was more than 5 years old and has a fleet of 20 airplanes. In the NCAP, 2016, mandatory 5 years have been removed from the policy and carriers now either have to have atleast 20 airplanes in their fleet or be serving 20% of the total capacity.


  • Since MRO business individually in India is worth around 5000 crores out of which 90% is spent outside India, Aviation policy aims to work towards development of Maintenance, Repair and Overhaul facilities within India by no levying the taxes and royalties and providing different benefits for developing MRO facilities leading to more jobs for youth in this lucrative sector.

Operational of Regional Airports will no doubt pave way for lot of new jobs in Airlines for youths in tier-II & tier-III cities.

“Ministry of Civil Aviation has also stated that it will develop a budgetary scheme for the Type-rating and other procedures for pilots who hold the CPL but are not employed currently”


  1. Relaxation in FDI Norms in Aviation: Another big factor that has played a huge role in Indian Aviation Boom is the relaxation of FDI norm where 100% foreign investment has been allowed helping Indian players to offer competitive fares attracting huge middle class population to choose Domestic Air travel.

FDI in Aviation including Domestic Airlines has brought in an investment of USD 931.05 million in the last 16 years and will surely grow in the up-coming years due to allowance of 100% FDI in this sector.

  1. Development of a new middle class: With a tremendous growth in the purchasing power and disposable income of the middle class in India which makes up around “267 million people as per the NCAER data” is the biggest reason for the boom in Air travel.

This growing middle class is the biggest chunk of rising new Domestic Airline customers being lured by the low ticket prices and time-saving.

  1. New Carriers and growing Investment: With the huge demand growth in the Indian Aviation Market, New players are trying to get into the game and current players are also eyeing expansion through getting fresh investments and increasing capacity.
  • A new carrier Zoom Air” has launched on 15th of Feb with a fleet of 5 airplanes
  • Interglobe Aviation which run Indigo Airlines has raised a sum of Rs. 3010 crores through IPO to accelerate its expansion.

All this cumulative demand, investment & developments in Indian Aviation Industry along with the launching of Aviation Policy have led to a volcanic eruption in the job opportunities in Aviation Sector with lucrative Job Positions like pilot in command, Co-pilot, senior & junior cabin crew, etc.

There is also ample opportunities to work in technical field in Aviation Aircraft Maintenance Engineer, Electrical Engineer, and Instrumentation Engineer etc.

We at Academy of Carver Aviation Pvt. Ltd. (ACAPL) would love to help turning your Flying dreams into a reality. This is no doubt a golden time to get into Aviation Sector. Don’t wait and join now.

Registration for CPL Training March batch are open now.

This is also a very good opportunity for those trainees who have left Aviation and would like to come back to get their license current and fly again. ACAPL which is one of the best pilot training academy in India will help you get your Flying tests and paper work done.

Good Luck!!

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