India plans its first Made-in-India civilian aircraft by 2028

India could have its first Made-in-India civilian aircraft within the next two years, Civil Aviation Minister K. Rammohan Naidu said on October 6, putting a potential 2028 timeline on one of the country’s most ambitious aviation manufacturing goals. The proposed programme would be pursued through a joint venture, although the government has not yet disclosed the aircraft model, private or international partner, production location, investment size or certification roadmap.

The announcement comes as India’s airline industry faces an unusual combination of rapid demand growth and a shortage of available aircraft. Indian airlines have more than 1,600 aircraft on order worth an estimated $100 billion, while the country’s domestic airline fleet is around 850 aircraft and more than 100 additional airports are expected over the next decade. The government increasingly wants that demand to create a domestic manufacturing ecosystem rather than leaving India primarily dependent on imported finished aircraft.

Key takeaways

• India aims to have a Made-in-India civilian aircraft within two years, potentially by 2028.
• The initial programme is expected to be structured as a joint venture.
• No specific aircraft model or partner has been publicly announced.
• India currently has around 165 airports and domestic airlines operate roughly 850 aircraft.
• Airlines have more than 1,600 aircraft on order, estimated at around $100 billion.
• Boeing and Airbus currently source about $4 billion worth of components and services from India, according to the civil aviation minister.
• That sourcing value is expected by the government to reach about $10 billion by the end of the decade.
• India is also exploring domestic jet-engine manufacturing, although the minister said that would take considerably longer.
• Existing programmes involving HAL, the SJ-100, Hindustan 228 and other aircraft provide building blocks, but they should not be confused with a finalized new indigenous passenger-aircraft programme.

India puts a two-year target on civilian aircraft

Naidu announced the target while speaking at a symposium of the Indian Foundation for Quality Management in New Delhi.

The minister said India would be able to produce a Made-in-India civilian aircraft within two years through a joint venture. He did not disclose details about the proposed partnership or identify the aircraft that would be produced.

That qualification is important.

The announcement represents a government target and policy direction rather than confirmation that a fully indigenous commercial aircraft programme has already reached the production stage.

Developing a civilian aircraft requires much more than assembling an airframe.

An aircraft programme needs engineering and design capability, engines, avionics, flight-control systems, landing gear, electrical systems, interiors, suppliers, testing facilities and regulatory certification.

For a commercial aircraft, the manufacturer also needs a support ecosystem capable of providing maintenance, spare parts, pilot training and other services throughout the aircraft’s operating life.

The two-year target therefore appears to be aimed at accelerating an existing ecosystem and partnership structure rather than suggesting India can build a completely new large passenger jet from a blank sheet of paper and bring it into commercial service in 24 months.

Why India wants its own civilian aircraft

India has become one of the world’s fastest-growing aviation markets.

The country’s domestic airlines are expanding their fleets rapidly, while airports are being developed across major cities and smaller regional markets.

Naidu said airlines currently have more than 1,600 aircraft on order, with the value of those orders estimated at about $100 billion.

India currently has around 165 airports and a domestic airline fleet of approximately 850 aircraft. The government expects more than 100 additional airports over the next 10 years.

That combination creates a potentially enormous domestic market for aircraft.

But most of the commercial aircraft purchased by Indian airlines are manufactured by international companies.

Airbus and Boeing dominate the large commercial aircraft market, while companies such as Embraer and others occupy regional aircraft segments.

India has become an important supplier to this global aerospace industry, but it has historically played a much larger role in components and engineering than in the manufacture of complete civilian passenger aircraft.

The government’s objective is to move further up the value chain.

India’s aerospace supply chain is already growing

India is not starting from zero.

Boeing and Airbus already source aircraft components and services from Indian suppliers.

Naidu said the current value of this sourcing is around $4 billion and could rise to $10 billion by the end of the decade.

That expansion matters because a civilian aircraft manufacturing programme requires a deep supplier base.

The government is therefore trying to build on capabilities that already exist.

Indian companies manufacture aerospace structures, components, wiring, precision-machined parts and other systems for global aircraft manufacturers.

Engineering companies also provide design and technical services to international aerospace firms.

The next step is to connect those capabilities into a domestic aircraft production chain.

If successful, an Indian aircraft programme could create demand across dozens or hundreds of domestic suppliers rather than concentrating economic value in the final assembly facility.

The difference between assembly and an indigenous aircraft

India’s recent aviation projects illustrate why the definition of “Made in India” matters.

The Tata-Airbus facility in Vadodara is being developed to manufacture C-295 military transport aircraft in India. It represents an important expansion of domestic aircraft manufacturing, but the C-295 is a European-designed aircraft programme rather than an Indian-designed civilian passenger aircraft.

Similarly, HAL has experience producing aircraft under licence and developing its own aircraft and helicopters.

Those capabilities are valuable because aircraft manufacturing is built through accumulated industrial knowledge.

However, manufacturing a licensed aircraft, assembling an international design and developing a clean-sheet commercial aircraft are three different levels of industrial capability.

The government’s latest announcement is significant because it explicitly targets civilian aircraft manufacturing rather than simply component production.

HAL already has civilian aviation ambitions

Hindustan Aeronautics Ltd has been expanding its focus on civil aviation.

At Wings India 2026 in January, HAL Chairman and Managing Director D.K. Sunil said the company wanted civil aviation to account for about 25% of its revenue within 10 years, compared with roughly 5–6% at the time.

HAL has been working on the civil certification of the Dhruv New Generation helicopter and has already obtained civil certification for its Hindustan 228 aircraft.

The Hindustan 228 is a 19-seat turboprop aircraft derived from HAL’s Dornier platform.

HAL has also been working with Russia’s United Aircraft Corporation on the SJ-100 regional aircraft.

The SJ-100 is a roughly 100-seat regional jet intended for short- to medium-haul routes.

In January, HAL said domestic production of the SJ-100 was expected to begin in about three years. The company planned initially to source aircraft from Russia before moving toward local production.

This timeline overlaps with the government’s new two-year ambition, but there is no confirmation that the SJ-100 is the aircraft Naidu was referring to.

That distinction should remain clear until the government or participating companies announce the joint venture.

The SJ-100 could become an important test case

The SJ-100 is particularly relevant because it addresses a segment that could fit India’s growing regional aviation market.

India needs aircraft that can economically connect smaller cities and regional airports.

Large narrow-body aircraft such as the Airbus A320 family and Boeing 737 family are optimized for high-volume routes. Smaller regional aircraft can be more suitable for thinner routes where passenger demand is still developing.

That is where a 100-seat-class aircraft could have an opportunity.

HAL’s planned involvement also provides India with an opportunity to develop experience in civilian aircraft manufacturing, maintenance and certification.

However, the commercial success of such a programme would depend on more than manufacturing capability.

Airlines need reliable aircraft, competitive operating costs, financing, maintenance support and predictable spare-parts availability.

An aircraft can be technically successful but commercially unsuccessful if airlines do not find its economics attractive.

Certification will be one of the biggest challenges

Civil aviation has an exceptionally demanding safety and certification framework.

A new aircraft must undergo extensive testing before entering commercial service.

This includes structural testing, flight testing, systems validation and certification of critical components.

The aircraft also needs to meet the requirements of India’s Directorate General of Civil Aviation and potentially foreign regulators if the manufacturer intends to export it.

That makes the government’s two-year target ambitious.

If the proposed joint venture is based on an existing aircraft design, the timeline becomes more plausible because much of the design and testing work may already exist.

If India attempts to develop a completely new aircraft design within that period, the challenge would be considerably larger.

The government has not yet provided enough information to determine which route it intends to follow.

Engines remain India’s biggest strategic gap

Naidu also said the government would examine the possibility of manufacturing jet engines domestically.

But he acknowledged that developing this capability would take time.

That is an important point.

Aircraft engines are among the most technologically difficult components in aviation.

They require advanced metallurgy, precision manufacturing, thermal engineering and extremely rigorous reliability testing.

Developing a competitive commercial jet engine can take many years and billions of dollars.

India’s civilian aircraft ambitions therefore do not necessarily mean every component will initially be domestically designed and manufactured.

A more realistic progression could involve increasing local production of structures, systems and components while relying on established international engine manufacturers.

Over time, domestic engine capabilities could be developed separately.

The opportunity extends beyond aircraft sales

A successful Indian aircraft manufacturing programme could create an ecosystem far larger than the aircraft itself.

Every aircraft requires a long-term supply chain.

That includes replacement parts, maintenance, repair and overhaul, pilot training, simulators, software, engineering services and specialized logistics.

India already wants to establish itself as a global MRO hub.

Domestic aircraft production could reinforce that ambition by creating local expertise around aircraft types manufactured in the country.

It could also provide Indian engineering companies with an opportunity to develop technologies that can later be exported to other aerospace programmes.

The potential economic impact therefore extends beyond the value of aircraft delivered to Indian airlines.

India wants to become more than an aircraft buyer

The government’s broader strategy is to shift India’s role in aviation.

For years, India’s rapidly expanding passenger market made the country one of the world’s largest customers for foreign aircraft manufacturers.

That position has economic benefits but also creates significant import dependence.

Naidu’s comments suggest the government wants to use India’s enormous aircraft demand as leverage to attract manufacturing.

If airlines are going to order thousands of aircraft over the coming decades, policymakers want a greater share of the associated economic activity to happen inside India.

That means not only final assembly but also engineering, component manufacturing, testing and maintenance.

Prime Minister Narendra Modi made a similar argument at Wings India 2026, saying India was already producing military and transport aircraft domestically and was moving forward in civil aircraft manufacturing.

International manufacturers are already looking at India

India’s aerospace opportunity is attracting international manufacturers.

Embraer, for example, has been evaluating the possibility of establishing a final assembly line in India for its E175 regional jet in partnership with Adani Defence and Aerospace.

Industry executives have pointed to India’s existing engineering and supplier capabilities as reasons why a local manufacturing programme could be established faster than in markets starting from a weaker industrial base.

This creates a potentially important competitive environment.

India does not necessarily need to build an aircraft programme entirely on its own.

A joint-venture model can combine Indian manufacturing, capital and market access with foreign aircraft-design expertise and established technologies.

That could make the government’s two-year ambition more achievable.

The domestic market could support scale

One of India’s biggest advantages is market size.

An aircraft manufacturer needs enough demand to justify expensive engineering and production investments.

India’s domestic aviation market is large enough to provide a potential launch customer base.

Airlines already have more than 1,600 aircraft on order, according to the civil aviation minister.

The government’s airport expansion plans could further increase demand for regional aircraft.

If an Indian manufacturer can develop a reliable aircraft that fits the requirements of domestic airlines, it could potentially achieve production scale before attempting exports.

That would be a major advantage over smaller aerospace markets.

But airlines will not buy aircraft for policy reasons alone

The biggest commercial test will be whether Indian airlines actually want the aircraft.

Airlines make aircraft decisions based on economics.

Fuel consumption, maintenance costs, reliability, passenger capacity, range, turnaround times and financing costs all matter.

An aircraft manufactured domestically will still need to compete against established international models.

Airlines may also prefer aircraft families that already have large global fleets because pilots, engineers, spare parts and maintenance infrastructure are easier to source.

The Indian aircraft programme will therefore have to offer a compelling commercial proposition rather than relying solely on government support.

High ATF prices add another complication

The aircraft manufacturing announcement comes at an unusually difficult moment for Indian airlines.

Aviation Turbine Fuel prices have risen sharply amid the West Asia crisis, increasing operating costs for carriers.

Naidu said the civil aviation ministry is discussing high fuel prices with airlines and oil marketing companies.

IndiGo has already increased fuel charges on domestic and international flights because of rising ATF costs.

That creates an interesting contrast.

India is trying to build more aircraft domestically at exactly the time when airlines are dealing with higher costs to operate those aircraft.

For a new Indian aircraft programme to succeed, manufacturers will ultimately have to demonstrate competitive operating economics.

What India needs to build a successful aircraft industry

The government has identified two of the most important requirements: high-quality materials and skilled manpower.

Both are critical.

A commercial aircraft manufacturer cannot depend solely on low-cost labour.

Aerospace production requires extremely precise manufacturing and quality-control processes because small defects can have serious consequences.

India therefore needs a supplier base capable of consistently meeting international aerospace standards.

It also needs engineers, technicians, certification specialists and experienced production managers.

Training this workforce will take time.

The good news is that India’s existing aerospace and automotive industries provide a substantial foundation.

Companies that already manufacture precision components for global aircraft manufacturers can potentially move into higher-value activities as the ecosystem develops.

The Bigger Picture

India’s proposed civilian aircraft programme represents a strategic shift from being one of the world’s biggest aircraft buyers toward becoming a manufacturer in its own right. The country’s enormous airline order book, expanding airport network and existing aerospace supply chain give it a potentially strong foundation, but a successful passenger aircraft requires much more than an assembly line.

The two-year target should therefore be viewed as an ambitious policy milestone rather than evidence that a completely new Indian-designed passenger jet will be flying commercially by 2028. The immediate test is whether the government can finalize the joint venture, identify the aircraft programme, establish manufacturing infrastructure and create a credible certification and supplier roadmap.

FAQs

Will India manufacture its own civilian aircraft by 2028?

The government is targeting that outcome. Civil Aviation Minister K. Rammohan Naidu said India could have a Made-in-India civilian aircraft within two years through a joint venture. However, the specific aircraft, partner and production programme have not yet been disclosed.

Which aircraft will India manufacture?

No aircraft has officially been identified for the new two-year programme. HAL is separately working on civilian aircraft including the Hindustan 228 and the Russia-linked SJ-100, but there is currently no official confirmation that either is the aircraft referred to by Naidu.

Does India already manufacture civilian aircraft?

Yes, but on a limited scale. HAL manufactures the Hindustan 228, a 19-seat civil aircraft, and has civil-certified aircraft capabilities. India also manufactures and assembles other aircraft and components, but it has not yet established a large-scale domestic commercial passenger-aircraft industry comparable with Airbus or Boeing.

How large is India’s aircraft market?

Indian airlines have more than 1,600 aircraft on order, with the government estimating their value at around $100 billion. India currently has about 165 airports and domestic airlines operate roughly 850 aircraft.

Could India manufacture jet engines too?

The government is exploring domestic jet-engine manufacturing, but Naidu said this would be a time-consuming process. Engine development is considerably more complex and capital-intensive than aircraft assembly.

Looking Ahead

The next major milestone will be the identification of the joint-venture partners and the aircraft programme itself. Once those details emerge, investors and the aviation industry will be able to assess whether the two-year target is based on an existing international design, a technology-transfer arrangement or a substantially new Indian aircraft development programme.

India’s long-term opportunity is considerably larger than one aircraft. If the country can combine its growing airline market with aerospace engineering, component manufacturing, final assembly, certification and MRO capabilities, it could become a major global aviation manufacturing hub. The challenge will be turning today’s policy ambition into a commercially competitive aircraft industry that airlines actually want to buy.