India is expected to have its first indigenous civilian aircraft within the next two years through a joint venture, Civil Aviation Minister K Rammohan Naidu said on Tuesday. He also said the government is in talks with airlines and oil marketing companies (OMCs) over rising jet fuel prices linked to the West Asia crisis.
Speaking at an Indian Foundation for Quality Management (IQFM) symposium in Delhi, Naidu said India’s aviation sector is expanding rapidly, with domestic airlines having around 1,600 aircraft on order worth an estimated $100 billion. More than 100 new airports are also expected to be developed across the country over the next 10 years.
India currently has 165 airports, while domestic airlines operate a fleet of around 850 aircraft.
Naidu said the proposed joint venture could help India achieve its first Made-in-India civilian aircraft within two years, although he did not provide details about the project or the companies involved.
The minister stressed the importance of building a strong aviation manufacturing ecosystem by improving the quality of materials and developing skilled workers for high-end manufacturing. He noted that Boeing and Airbus currently source around $4 billion worth of components and services from India, with this figure expected to reach $10 billion by the end of the decade.
The government is also considering the possibility of manufacturing aircraft engines in India. However, Naidu said developing domestic jet engine manufacturing capabilities would take considerable time.
Meanwhile, rising Aviation Turbine Fuel (ATF) prices are putting pressure on airlines. Naidu said the West Asia crisis has added to the burden on fuel prices and that the government is discussing the issue with airlines and OMCs.
His comments came a day after IndiGo announced an increase in fuel surcharges on domestic and international flights due to rising jet fuel costs. The airline said ATF prices have remained volatile in recent months amid geopolitical tensions in the Middle East.
IndiGo also noted that the latest month-on-month increase in fuel prices exceeded 14 per cent, pushing ATF costs to among their highest levels in the past decade.
