India’s aviation sector plays a key role in passenger and cargo movement across the country. Connectivity has significantly improved with airlines expanding their reach to new destinations and routes, supported by government initiatives such as the Regional Connectivity Scheme – Ude Desh ka Aam Nagrik. However, challenges remain, including limited connectivity to hard-to-reach locations and traffic congestion hindering road travel, highlighting the need for alternative modes of connectivity. To this end, the adoption of advanced air mobility through technologies such as drones and electric vertical take-off and landing (eVTOL) aircraft, in addition to seaplanes and helicopters, offer promising potential. These advancements not only enhance urban mobility but also provide significant advantages for accessing remote areas and challenging terrain where traditional ground transportation is less feasible.
eVTOLs
The potential for eVTOL deployment for urban mobility has gained widespread attention in recent years, leading to the emergence of new technologies and players in the segment. In addition to collaborating with international organisations, the Directorate General of Civil Aviation (DGCA) has set up six working groups to analyse eVTOL and related areas, including crew, permits and maintenance, repair and overhaul activities, as well as to formulate regulations tailored to the Indian ecosystem. Further, the DGCA undertook two key initiatives in September 2024 following consultations with domestic and international stakeholders. These include the guidelines for the design, operation and authorisation of vertiports that can be used for operating eVTOL aircraft, and an advisory circular on airworthiness criteria for the type certification of these vertical take-off and landing-capable aircraft.
The segment is also gaining traction with efforts by various stakeholders. The ePlane Company recently received approval from the DGCA for type certification of its e200X aircraft, featuring compatibility with diverse regions across the country, given lower infrastructure requirements due to its compact wingspan. The company targets the commencement of services using eVTOL aircraft by 2026. More recently, Sarla Aviation announced the raising of $10 million in a Series A1 funding round in January 2025. Their flying taxis aim to revolutionise transportation in the country and tackle traffic congestion and pollution concerns. It also unveiled its prototype air taxi Shunya in January 2025, which has a capacity to accommodate up to six passengers and operate short trips of 20-30 km at a speed of up to 250 km per hour. The electric flying taxis are targeted for initial launch by 2028 in Bengaluru, with services also planned for Mumbai, Delhi and Pune.
Seaplanes
Efforts have also been directed towards the promotion of seaplane operations. There are notable opportunities in the sector stemming from the presence of rivers, lakes and long coastlines across the country. Seaplane operations are expected to boost tourism, in addition to enhancing connectivity to these regions. Noteworthy efforts are also being made by the government, such as the launch of guidelines for seaplane operations by the Ministry of Civil Aviation in August 2024, targeting the growth of the sector.
Various companies have initiated efforts to tap the opportunity in this segment. De Havilland Aircraft of Canada Limited carried out seaplane demonstrations across various parts of the country, including Meghalaya and Lakshadweep, in November 2024. SpiceJet also has plans for seaplane operations in the country in 2025. More recently, in January 2025, representatives of SpiceJet, along with officials from Andhra Pradesh’s tourism department and Andhra Pradesh Power Generation Corporation Limited carried out a survey for a seaplane tourism route between Rushikonda and Jolaput in the state.
UAVs and drones
Drones have gained traction in sectors such as agriculture, transportation, medicine and vaccine delivery, and defence and surveillance, offering solutions for efficient logistics, remote access and enhanced monitoring. For deliveries in particular, drones have shown significant potential for deployment, and players such as Skye Air Mobility are making headway in the segment. For instance, in June 2024, Blue Dart partnered with Skye Air to commence drone delivery services, starting with the e-commerce sector. Further, Skye Air has reportedly completed around 150,000 deliveries in Gurugram, in December 2024.
Apart from this, various collaborations and MoUs have also been undertaken to explore opportunities in the advanced air mobility landscape. In January 2025, Tata Elxsi and the Council of Scientific and Industrial Research-National Aerospace Laboratories signed an MoU aimed towards a strategic partnership in advanced air mobility, with a focus on unmanned aerial vehicles (UAVs), urban air mobility, and eVTOL technologies. Tata Elxis also signed an MoU with Garuda Aerospace in February 2025 for the development of indigenous drone technologies through a dedicated UAV design, engineering and certification centre. They are likely to be deployed for defence applications, in smart cities and for agricultural purposes.
The way forward
Advancements in technologies and modes of transit in air mobility offer promising opportunities to the sector. While efforts are still in the nascent stages, trends indicate steady growth, backed by the benefits of these mobility solutions. With various modes of advanced air mobility expected to gain traction, the development of plans and guidelines for the use of airspace also becomes essential. The industry also stands to benefit from the development of multi-modal transport hubs for connectivity between transport modes. Looking ahead, the segment is poised to witness a notable transformation in the coming years.
