CALCULATE YOUR SIP RETURNS

India Plans Indigenous Aircraft Production: Government to Set Up SPV for Regional Transport Planes

Written by: Team Angel OneUpdated on: Mar 11, 2025, 3:00 PM IST
India is setting up a Special Purpose Vehicle (SPV) to manufacture regional transport aircraft, strengthening its aviation ecosystem under the “Make in India” initiative.
India Plans Indigenous Aircraft Production: Government to Set Up SPV for Regional Transport Planes
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

India is making major strides towards self-reliance in the aviation sector. The government, under the leadership of Union Minister of Civil Aviation Mr Kinjarapu Ram Mohan Naidu, has announced the creation of a Special Purpose Vehicle (SPV) to manufacture regional transport aircraft. This move aligns with the broader “Make in India” initiative, aiming to build a robust domestic aerospace ecosystem.

Addressing Growing Aviation Demand

With domestic airlines placing orders for over 1,500 aircraft to meet rising passenger demand, the need for local manufacturing has become more urgent. The planned SPV will operate on a 5-year timeline, uniting key stakeholders, evaluating industry requirements, and laying out a roadmap for indigenous production. This initiative not only reduces reliance on imports but also strengthens India’s position in the global aviation industry.

Workforce Development and Skill Enhancement

To support the aviation sector’s expansion, the government is investing in workforce training and skill development. Currently, 58 Flying Training Organisations (FTOs) are actively preparing professionals for careers in aviation. These institutions are crucial in ensuring that India has the skilled manpower needed to sustain and grow its aerospace ambitions.

Strengthening Aircraft Manufacturing and MRO Capabilities

Beyond aircraft assembly, the initiative also focuses on enhancing component manufacturing and Maintenance, Repair, and Overhaul (MRO) capabilities. Expanding these operations within India will not only boost domestic expertise but also create new job opportunities and attract investments into the aviation sector.

Spotlight on the Saras Mk2: A Step Towards Self-Sufficiency

A significant milestone in India’s aviation progress 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 aircraft features:

  • Advanced composite wings for improved aerodynamics
  • Lightweight materials to enhance fuel efficiency
  • Modern avionics for enhanced operational capability

The development of the Saras Mk2 marks a crucial step towards reducing dependence on foreign manufacturers and boosting India’s aerospace self-reliance.

Conclusion: Aviation Self-Reliance 

With policies now in place to facilitate aircraft manufacturing, India is steadily working towards achieving autonomy in aerospace production. The establishment of the SPV, coupled with investments in skill development and MRO facilities, signifies a long-term commitment to making India a global aviation hub.

By fostering innovation, enhancing technical capabilities, and supporting homegrown aircraft production, India is setting the stage for a new era in aviation—one where it not only meets domestic demand but also emerges as a strong contender in the global market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Mar 11, 2025, 3:00 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

Know More

We're Live on WhatsApp! Join our channel for market insights & updates

Open Free Demat Account!

Join our 3 Cr+ happy customers

+91
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy ₹0 Account Opening Charges

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 3 Cr+ happy customers