India Plans Regional Transport Aircraft, Sets Up SPV for Production

Team Finance Saathi

    11/Mar/2025

What's Covered Under the Article:

  • Government launches Special Purpose Vehicle (SPV) to manufacture regional transport aircraft.
  • Saras Mk2 project advances, showcasing India's aviation manufacturing capabilities.
  • Training and MRO infrastructure expansion to boost aviation workforce and self-reliance.

The Indian government is making significant strides towards self-reliance in aircraft manufacturing, aligning with its Make in India initiative. Union Minister of Civil Aviation Mr. Kinjarapu Ram Mohan Naidu announced the establishment of a Special Purpose Vehicle (SPV) to manufacture regional transport aircraft. The move comes as India strengthens its position in the global aviation industry, transitioning from an importer to a manufacturer of aircraft.

India’s Growing Aviation Market & Manufacturing Push

India's aviation sector is witnessing unprecedented growth, with domestic airlines ordering over 1,500 aircraft to meet increasing passenger demand. To reduce reliance on foreign manufacturers, the government is developing a robust aircraft manufacturing ecosystem, ensuring that India can design, manufacture, and maintain its own aircraft. The SPV, set up with a five-year timeline, will:

  • Bring together key stakeholders from the government and private sector.
  • Assess the existing landscape of aircraft manufacturing in India.
  • Develop a structured roadmap for the production of regional transport aircraft.

The initiative aims to establish India as a leading aviation manufacturing hub, supporting both domestic and global markets.

Saras Mk2 – A Step Toward Indigenous Aviation

One of the key developments in India's push for aircraft manufacturing is the Saras Mk2, a 19-seater Light Transport Aircraft developed by the Council of Scientific and Industrial Research - National Aerospace Laboratories (CSIR-NAL) in collaboration with Hindustan Aeronautics Limited (HAL).

The Saras Mk2 is designed with:

  • Advanced composite wings for improved aerodynamics.
  • Lightweight materials to enhance fuel efficiency.
  • Modern avionics systems to ensure better navigation and safety.

This project showcases India's ability to produce next-generation aircraft, reducing dependence on foreign suppliers and reinforcing self-sufficiency in aerospace technologies.

Strengthening Aviation Workforce & Infrastructure

Recognizing the need for a skilled workforce, the government has expanded aviation training programs. Currently, 58 Flying Training Organisations (FTOs) are operating across India, preparing the next generation of pilots and aviation professionals.

Additionally, the government is enhancing India’s Maintenance, Repair, and Overhaul (MRO) ecosystem, ensuring that aircraft servicing and repairs can be conducted domestically, reducing operational costs for airlines.

India’s Vision for Global Aviation Leadership

With these strategic initiatives, India is positioning itself as a major player in the global aviation industry. By fostering indigenous aircraft production, expanding aviation training, and strengthening MRO capabilities, the government aims to transform India into an aviation powerhouse.

The establishment of the SPV for regional transport aircraft and advancements in projects like Saras Mk2 mark a historic shift in India’s aviation industry, paving the way for self-reliance, economic growth, and global competitiveness in aircraft manufacturing.


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