Business Aviation in India has many challenges

Business in aviation in India is growing, but it continues to face regulatory challenges.

- R. CHANDRAKANTH reports

During the Paris Airshow, there was a quiet but important announcement by France’s Dassault Aviation to manufacture Falcon 2000 business jets in India from 2028. This is a first for the French company to manufacture outside of France and in collaboration with Anil Ambani’s Reliance Aerostructure Limited. Dassault Aviation is taking a big bet on the business jet market in the Asia Pacific region, particularly India, which is witnessing encouraging growth but with its own set of challenges.

In the region, India is the third-largest business jets market after China and Australia. The 122 nonscheduled operators in the country operate 438 aircraft, both fixed wing and rotary. Of the 208 fixed-wing aircraft, 168 are business jets, with an annual net increase of 18 aircraft in 2024, and the trend is likely to continue in 2025. With the Indian economy doing well and the number of high net-worth individuals (HNIs – having more than $10 million in wealth) growing at a healthy pace, business aviation is sitting pretty, despite several operational challenges. According to Knight Frank's Wealth Report 2025, there was a 6 per cent growth in the number (85,698) of HNIs in 2024, expected to touch 93,753 by 2028, and this is expected to spur investments in business jets besides those chartering them for their travel, avoiding flying low-cost carriers.

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The Dassault-Reliance joint venture intends to tap the Indian potential, besides the growth in the region. The collaboration is likely to skirt one of the biggest challenges for business jet operators in India – that of substantial import duties.