INDIA'S BUSINESS AVIATION: UNREALISED POTENTIAL AND THE URGENT PATH FORWARD

India's business aviation sector faces systemic policy, taxation, and regulatory constraints, despite strong demand. Treating aircraft as productivity assets, reforming taxes, liberalising FDI, and building infrastructure are essential to unlock growth in this sector.

- By SANJAY JULKA, CEO TECHNICAL, CLUB ONE AIR

GEN Z MULTI-MILLIONAIRES AND BILLIONAIRES VIEW BUSINESS jets not as luxury symbols, but as essential productivity tools. A single aircraft enables a founder to seal deals in Mumbai, Pune, and Bengaluru in a single day—tripling meetings, market reach, and revenue potential. This is efficient time management, not extravagance. Yet, despite surging demand, India's business aviation sector lags far behind its potential.

PROMISE VS. STARK REALITY

A decade ago, forecasts predicted 2,000 helicopters and strong business jet growth by 2025, establishing the sector as vital infrastructure for tier-2 and tier-3 connectivity. Reality today stands at around 300-400 civilian helicopters and gradual business jet expansion. Growth persists, but painfully slow.

Demand is undeniable. Industrialists, multi-city enterprises, and entrepreneurs increasingly recognise the value of business aviation. The bottleneck lies elsewhere. Generalist policies continue to be applied to a highly specialised sector that requires bespoke expertise, incentives, and infrastructure.

CRITICAL CONTRADICTIONS STALLING PROGRESS

FDI Barriers: While 100 per cent FDI is permitted for nonscheduled operators, lengthy clearances—often extending to nine months—and substantial control restrictions repel investors. This contrasts sharply with swift approvals in markets like the UAE and Saudi Arabia where there is nil restriction on local participation.

Punitive Taxation: High import duties on aircraft acquisition costs and incorrectly categorising productive capital assets as luxury goods are suppressing fleet growth and job creation.

Over-Regulation: Duplicative certifications and pilot requirements beyond global norms drain talent and push operational costs.