Policy Update
Neha Pal
Background
India’s civil aviation sector has grown rapidly over the last decade. Domestic passenger traffic reached 16.13 crore in 2024, while the number of operational airports increased from 74 in 2014 to 164 by late 2025 (Ministry of Civil Aviation, 2025). The expansion of airlines, airports, and regional connectivity has also increased the responsibility of institutions dealing with aviation safety, security, and regulation.
This growth also highlighted the limitations of the Aircraft Act, 1934, which had served as the main legal framework for Indian aviation for nearly nine decades. Although the Act had been amended several times, the changing nature of aviation created the need for a more updated legal framework, particularly in areas such as aircraft design, manufacturing, maintenance, and modern aviation operations. The need for a new framework was also linked to ambiguities and redundancies that had accumulated through repeated amendments to the 1934 Act, as well as the need to facilitate aircraft manufacturing, maintenance, and ease of doing business.
The Bharatiya Vayuyan Vidheyak was introduced in the Lok Sabha on 31 July 2024 and passed on 9 August 2024. The Rajya Sabha passed it on 5 December 2024, followed by presidential assent on 11 December 2024. The Bharatiya Vayuyan Adhiniyam, 2024, came into force on 1 January 2025, replacing the Aircraft Act, 1934. The Act aims to regulate the design, manufacture, maintenance, possession, use, operation, sale, export, and import of aircraft, while also addressing licensing, certification, safety, international aviation obligations, penalties, and appeals. It is intended to benefit passengers, airlines, manufacturers, maintenance providers, and other aviation stakeholders by providing a more updated and streamlined legal framework.
The new law is therefore an important step towards updating India’s legal framework for civil aviation. However, replacing an old law does not automatically resolve challenges related to regulation, safety, infrastructure, or domestic capability. Its contribution to Viksit Bharat 2047 will depend largely on how effectively its provisions are implemented and how well they work with the wider civil aviation policy system.
Functioning
Regulatory Institutions: The Bharatiya Vayuyan Adhiniyam largely continues the existing institutional structure rather than creating an entirely new aviation regulatory system. It gives statutory recognition to three important institutions: the Directorate General of Civil Aviation (DGCA) for aviation regulation and safety oversight, the Bureau of Civil Aviation Security (BCAS) for aviation security, and the Aircraft Accident Investigation Bureau (AAIB) for investigating aircraft accidents and serious incidents (Ministry of Civil Aviation, 2024; PRS Legislative Research, 2024).
At the same time, the Central Government continues to exercise superintendence over these institutions and can issue directions or review certain decisions. This provides government oversight but also raises a question about how much independence technical regulators should have when taking safety-related decisions.
Wider Regulatory Scope: One of the important changes is that the Act specifically covers aircraft design, manufacture, and maintenance, along with possession, operation, sale, import, and export. This is relevant as India seeks to develop a stronger domestic aviation and aerospace ecosystem.
The Act also empowers the Central Government to make rules relating to licensing, certification and inspection, air transport services, international civil aviation obligations and other matters connected with aviation. It also introduces a clearer legal basis for regulating aircraft design, which was not explicitly covered in the same way under the earlier framework.
Key Beneficiaries: The Act affects a broad range of aviation stakeholders. Airlines and aircraft operators are subject to its licensing, operational and safety requirements, while manufacturers and maintenance providers are covered through provisions relating to aircraft design, manufacturing and maintenance. Passengers and the wider public benefit indirectly through safety, security and enforcement provisions. The framework also has implications for India’s emerging aviation manufacturing and MRO sectors by providing a statutory basis for regulating these activities.
International Standards: India is a party to the Chicago Convention, 1944, and follows the international standards and recommended practices developed by the International Civil Aviation Organization (ICAO). The new Act provides a legal basis for the government to make rules for implementing these international obligations.
This is important for maintaining India’s aviation safety standards and supporting the international operations of Indian airlines and aircraft.
Licensing, Enforcement, and Appeals: The Act also provides for licensing and certification and lays down offences and penalties for violations of aviation rules and directions. It also provides a multi-level system for adjudication and appeals.
The purpose of these provisions is to make enforcement more systematic. However, the effectiveness of the system will depend on whether regulatory decisions are taken consistently and whether affected operators have access to a fair review process. The Act also provides a structured mechanism for adjudication of penalties and appeals. In addition to the existing appellate mechanism, it provides for a second level of appeal against certain decisions relating to penalties. The law also specifies offences and provides for imprisonment and financial penalties for specified violations.
Performance
The Bharatiya Vayuyan Adhiniyam came into force in January 2025 against the background of rapid expansion in India’s civil aviation sector. Domestic passenger traffic reached around 16.13 crore in 2024, while the number of operational airports had increased substantially from the 2014 level. The country’s aircraft fleet has also continued to grow.
Table 1: Key Indicators of India’s Civil Aviation Growth
| Indicator | Earlier Position | Recent Position |
| Operational airports | 74 (2014) | Around 160 (2025) |
| Domestic passengers | 136 million (FY 2022-23) | 153.7 million (FY 2023-24) |
| International passengers | 54.6 million (FY 2022-23) | 66.8 million (FY 2023-24) |
| Scheduled airline fleet | 771 aircraft (beginning of 2024) | 834 aircraft (December 2024) |
| UDAN routes | Launched in 2016 | 619 operationalised by 2024-25 |
Source: Ministry of Civil Aviation, DGCA and Press Information Bureau.
These indicators show the scale of growth alongside which the Bharatiya Vayuyan Adhiniyam has come into force. However, they should not be treated as direct outcomes of the new law, as most of this expansion predates its implementation. Instead, they highlight the growing regulatory and institutional demands that the new framework will have to address.
Regional connectivity has expanded through schemes such as UDAN, while the government has also introduced measures to support Maintenance, Repair and Overhaul (MRO) activities. These developments show that the new law is being implemented within a much larger effort to expand and modernise Indian aviation.
Its real performance will become clearer over time through improvements in safety oversight, regulatory efficiency, international compliance, domestic aviation capability and the ability of institutions to manage a much larger aviation system.
Impact
Impact on Regulatory Governance: The Act strengthens the statutory basis of India’s aviation regulatory architecture by formally providing for key regulatory, security and accident-investigation functions. However, its impact on regulatory governance will depend on the capacity and independence of these institutions. The Central Government retains significant supervisory powers, while questions remain regarding qualifications, selection procedures and tenure for senior regulatory positions.
Impact on Domestic Aviation Capability: The Act also has potential implications for India’s domestic aviation capability by explicitly covering aircraft design, manufacturing and maintenance. This creates a clearer legal foundation for developing domestic manufacturing and Maintenance, Repair and Overhaul (MRO) capabilities. However, the impact will depend on investment, technical skills, research capacity, component manufacturing and supporting supply chains.
Impact on Ease of Doing Business and Regulatory Efficiency: The Bharatiya Vayuyan Adhiniyam, 2024, seeks to create a clearer and more streamlined regulatory framework for civil aviation. Its provisions relating to licensing, certification, regulatory oversight and appeals can reduce regulatory uncertainty for airlines, airports, maintenance organisations and other stakeholders. The Act therefore has the potential to improve regulatory efficiency and ease of doing business, although its actual impact will depend on effective implementation through rules and institutional mechanisms.
Impact on Aviation Growth: India’s aviation sector has expanded considerably in recent years, reflected in rising passenger traffic, airport infrastructure and fleet capacity. However, these developments should not be treated as direct outcomes of the new law, as aviation growth is influenced by broader economic, infrastructure and policy factors. The Act’s significance therefore lies less in directly producing aviation growth and more in creating a legal framework capable of governing an increasingly large and complex aviation sector.
Emerging Issues and Challenges
Digitalisation and Cybersecurity: Digital systems are becoming an important part of modern aviation. Initiatives such as Digi Yatra are changing how passengers move through airports, while communication, navigation and surveillance systems are becoming increasingly dependent on digital infrastructure.
This also creates new vulnerabilities. A cyberattack on airport systems, air-traffic management or other aviation infrastructure could affect more than normal commercial operations. Aviation cybersecurity should therefore increasingly be considered part of India’s wider critical infrastructure and national security planning.
Drones and Emerging Aviation: India’s drone sector is also expanding rapidly. The Digital Sky platform and other regulatory mechanisms have created a framework for drone operations, while the government is working towards further development of the sector.
However, the Bharatiya Vayuyan Adhiniyam should not be viewed as the only law governing drones. The Drone Rules, 2021, and other regulatory mechanisms continue to play an important role. As unmanned aircraft become more common, better coordination between manned and unmanned aviation will become increasingly important.
Climate and Sustainable Aviation: The growth of aviation also creates an environmental challenge. Sustainable aviation fuel, energy efficiency, emissions reduction and climate-resilient airport infrastructure are becoming increasingly important for the future of the sector.
For India, this has a strategic dimension as well. Airports and aviation infrastructure in remote, border and island regions need to remain operational during extreme weather and other disruptions. Climate resilience should therefore be considered part of long-term aviation planning.
Way Forward
Strengthen Regulatory Capacity: The government should focus on improving the technical capacity of the Directorate General of Civil Aviation (DGCA), Bureau of Civil Aviation Security (BCAS), and Aircraft Accident Investigation Bureau (AAIB) through specialist recruitment, regular training, and better safety-data systems. As aviation expands, regulatory institutions need to grow at a similar pace.
Provide Clearer Regulatory Autonomy: There should be a clearer distinction between government policy decisions and technical safety decisions. The government will continue to have an important role in aviation policy and national security, but day-to-day technical decisions should be based primarily on professional and safety considerations. Clearer rules regarding qualifications, tenure and review mechanisms for senior regulatory positions can help in this regard.
Connect Aviation Growth with Domestic Capability: India should use its growing aviation market to develop stronger domestic capabilities in Maintenance, Repair and Overhaul (MRO), manufacturing, components, research and technical education. Policy incentives should increasingly be linked to measurable outcomes such as domestic value addition, skilled employment and technology development rather than only investment announcements.
Strengthen Aviation Cybersecurity: Aviation cybersecurity should be integrated into India’s wider critical infrastructure and national security planning. Greater protection of airport systems, air-traffic management, communication networks and other digitally dependent aviation infrastructure will be necessary as the sector becomes increasingly digitalised.
Integrate Civil Aviation into Strategic Planning: Civil aviation should be considered an important part of India’s wider economic and strategic infrastructure. Better civil-military airspace coordination, reliable connectivity to remote and strategically important regions, stronger cybersecurity and resilient aviation infrastructure should form part of long-term planning.
Conclusion
The Bharatiya Vayuyan Adhiniyam, 2024, is an important step in updating India’s legal framework for civil aviation. It replaces the Aircraft Act, 1934, and brings areas such as aircraft design, manufacturing and maintenance more clearly within the statutory framework. It also gives statutory recognition to key aviation institutions and provides a legal basis for implementing India’s international aviation obligations.
However, the new law should not be seen as a complete transformation of Indian aviation. Most of the existing institutional structure continues, and the Central Government retains significant supervisory powers. The real test will therefore be implementation.
For Viksit Bharat, India needs an aviation system that is not only larger but also safer, more accessible, technologically capable and resilient. This will require stronger regulatory institutions, better infrastructure, skilled manpower, domestic MRO and manufacturing capabilities, cybersecurity and sustainable aviation practices.
The Bharatiya Vayuyan Adhiniyam provides the legal foundation, but the success of India’s aviation ambitions will ultimately depend on the institutions and capabilities built around it.
References
Airports Authority of India. (2025). AAI marks the 31st annual day and announces a ₹25,000 crore capex plan and major airport expansion. PSU Connect. https://www.psuconnect.in/psu-news/aai-marks-31st-annual-day-announces-25000-crore-capex-plan-and-major-airport-expansion
Directorate General of Civil Aviation. (2025). Handbook on civil aviation statistics 2024–25. https://www.dgca.gov.in
International Civil Aviation Organization. (2024). Annex 17 to the Convention on International Civil Aviation: Security (12th ed.). https://www.icao.int
Kodainya. (2026, August 7). Drone laws in India: DGCA Rules 2021, UIN & DigitalSky. https://www.kodainya.com/blogs/drone-laws-in-india
Ministry of Civil Aviation. (2016). National Civil Aviation Policy 2016. https://www.civilaviation.gov.in/ministry-documents/policies-document/ncap-2016
Ministry of Civil Aviation. (2024). Bharatiya Vayuyan Adhiniyam, 2024 (Act No. 16 of 2024). https://www.civilaviation.gov.in/act/bharatiya-vayuyan-adhiniyam-2024
Ministry of Civil Aviation. (2025). Annual report 2024–25. https://www.civilaviation.gov.in/ministry-documents/annual-reports
Ministry of Civil Aviation. (2025, November 7). The government is to unveil the Sustainable Aviation Fuel Policy soon. Economic Times. https://travel.economictimes.indiatimes.com/news/ministry/india-set-to-launch-sustainable-aviation-fuel-policy-to-cut-emissions/125152467
Ministry of Civil Aviation. (2025, December 4). India targets a 5% biofuel blend by 2030 on international flights. Advanced Biofuels USA. https://advancedbiofuelsusa.info/india-targets-5-biofuel-blend-by-2030-on-international-flights-to-cut-emissions
Press Information Bureau. (2024, August 9). Achievement of the Ministry of Civil Aviation. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2089984
PRS Legislative Research. (2024). The Bharatiya Vayuyan Vidheyak, 2024. https://prsindia.org/billtrack/the-bharatiya-vayuyan-vidheyak-2024
Whalesbook. (2026, May 30). DigiYatra expansion faces scaling and privacy hurdles. https://www.whalesbook.com/news/English/transportation/DigiYatra-Expansion-Faces-Scaling-and-Privacy-Hurdles/6a1b0ee605f03b9a55aeaffc
About the Contributor:
Neha Kumari is a Research and Editorial Intern at IMPRI and a first-year M.A. student in Defence and Strategic Studies at the Central University of Gujarat. She holds an undergraduate degree in Social Management from the same university. Her research interests include governance, public policy, national security, and India’s foreign policy.
Acknowledgements:
I would like to express my sincere gratitude to IMPRI for providing me the opportunity to prepare this article and for fostering a rigorous learning environment that connects research with public policy practice.
Reviewers: Shivali Yadav & Sneha Kohli
Publisher: Prisha Sachdeva
Disclaimer:
All views expressed in the article belong solely to the author and not necessarily to the organisation.
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