The General Aviation Manufacturers Association (GAMA) reported global sales of 730 new private business jets in 2023, which is a significant increase from the 712 new jets sold in 2022. Sales of piston and turboprop airplanes also increased by an even larger percentage, as did sales of new helicopters. Overall new aircraft deliveries were valued at $27.8 billion, an increase of 3.6%.

India business jet market size is projected to exhibit a growth rate (CAGR) of 6.70% during 2024-2032. The increasing demand for business jets, which offer time-saving advantages over commercial flights, thereby enabling executives to travel directly to their destinations without the hassle of lengthy airport procedures and layovers, is driving the market.

The private jet charter industry in India is primed for takeoff in the next five years. The India Aviation Market size is estimated at $13.89 billion in 2024, and is expected to reach $26.08 billion by 2030, growing at a CAGR of 11.08% during the forecast period (2024-2030).

There are 22,000 business jets in service today. By 2032, we expect to see 26,000 business aviation aircraft in service. This leads to an 18% growth in the total aircraft fleet over the next ten years. The primary driver of this growth is the increase in large cabin business jets.

The business jet market in India is experiencing robust growth, driven by several key factors.

Firstly, the growing businesses have elevated the demand for swift and flexible air travel, propelling the market forward. Consequently, as companies expand their operations regionally, the need for efficient and time-saving transportation options becomes imperative, thereby fostering the demand for business jets. Moreover, advancements in technology have significantly enhanced the capabilities and efficiency of business jets, contributing to their heightened popularity.

State-of-the-art avionics, fuel-efficient engines, and cutting-edge design innovations have collectively augmented the appeal of these aircraft, attracting discerning buyers seeking the latest in aviation technology. Furthermore, the rising importance of time management in the corporate world has positioned business jets as indispensable tools for executives and high-profile individuals. The ability to conduct business meetings and negotiations while in transit, without the constraints of commercial flight schedules, has become a compelling advantage, compelling businesses to invest in private aviation solutions. In essence, a confluence of regional business dynamics, technological innovations, time efficiency imperatives, and a renewed focus on health and safety collectively propel the thriving trajectory of the business jet market in India.

The Union government is considering a proposal to scrap 2.5% import duty on commercial business jets, potentially levelling the playing field for non-scheduled operators as there is no such tax on commercial airliners.

The Civil Aviation Ministry aims to equalise treatment between private and commercial jets. In December, it formally proposed to the Finance Ministry the elimination of import duties on private and business jets, two reliable sources told this correspondent.

India faces infrastructure constraints, which the Centre is trying to address, having pledged to invest $12bn by 2025 on modernising airports and constructing new ones.

There are also challenges around a lack of skilled labour, which could be addressed through dedicated skills programs. Easing of regulations and reduction in fuel taxes could also encourage growth by generating more favorable business conditions.

The unequal tax system is often blamed for the country's stagnant number of non-scheduled operators, which has been between 100 and 120 over the past 15 years.

Data from the Directorate General of Civil Aviation (DGCA) shows that 381 jets and helicopters were registered with 112 non-scheduled operators as of December 2023.

Typically, aviation sector development correlates with an increase in GDP, which in India is projected to be 5.5% per year over the next 20 years, according to the Organization for Economic Cooperation and Development.

Additionally, the number of ‘super rich’ households in India is forecast to rise by five times to 9.1 million by 2030, according to a report from People Research on India’s Consumer Economy (PRICE), which will introduce a new wave of business aviation users over the next several years. There’s also increased optimism about the country’s economic situation.

Companies are already responding to this promising landscape. The huge order numbers from airlines has driven the economic prosperity of the region. Due to this, start-ups in business aviation are seeking to capitalize on previously untapped demand for exclusive experiences.

For example, EaseMyTrip is hoping to increase its air charter business, having acquired an operator and aircraft management company, Nutana Aviation Capital, late 2022.