India Emerges as Prime Location for Aviation GCCs
29 Apr 2025 / 03 min read
A new whitepaper by Nasscom has highlighted India’s potential as a strategic location for Global Capability Centres (GCCs) in the aviation industry, driven by its skilled talent pool, cost advantages, advanced digital infrastructure, and progressive government policies.
A new whitepaper by Nasscom has highlighted India’s potential as a strategic location for Global Capability Centres (GCCs) in the aviation industry, driven by its skilled talent pool, cost advantages, advanced digital infrastructure, and progressive government policies.
The whitepaper has presented a comprehensive roadmap for establishing GCCs in India, tailored to the aviation sector, and outlines the benefits of leveraging India’s rapidly maturing aerospace ecosystem.
The aviation industry is on the cusp of substantial expansion, with the global market expected to reach $771.26 billion by 2029, growing at a compound annual growth rate (CAGR) of 4.36% from 2025 to 2029. However, the industry faces numerous operational challenges, including rising fuel prices, complex maintenance regimens, stringent regulatory compliance, and supply chain vulnerabilities.
Establishing GCCs in India can help aviation companies address these challenges by streamlining operations, reducing overhead costs, and accessing specialized talent and advanced technologies. The GCC model centralizes critical functions such as IT, engineering, R&D, and customer support in cost-efficient offshore locations, benefiting both mid-size and large aviation companies.
The Indian government has taken initiatives to promote the aviation sector, including improving policies to increase connectivity and tourism, rationalizing ATF taxes, and developing infrastructure.
The Ministry of Civil Aviation’s total budget for 2025-26 is Rs 2,400.31 crore, including Rs 70.00 crore for capital expenditure on development. Schemes like UDAN aim to create opportunities for aviation companies to tap into new markets, particularly in Tier-II and Tier-III cities.
India’s labour cost differential, significantly lower than Western counterparts, can facilitate potential operational savings of up to 30-40%. Additionally, India’s logistical scalability, coupled with strong governmental support, positions it as an optimal nexus for technological innovation and operational augmentation within the aviation sector.
The whitepaper has suggested that key strategies for sustainable growth in the aviation industry include enhancing MRO (Maintenance, Repair, and Overhaul) capabilities, forming public-private collaborations, and prioritizing talent development. The establishment of GCCs in India can help aviation companies capitalize on these opportunities and drive sustainable innovation, operational resilience, and competitive advantage.
By leveraging India’s advanced digital infrastructure, progressive government policies, and abundant reservoir of skilled labour, aviation companies can optimize operational performance and achieve long-term profitability. The confluence of technological evolution, strategic alliances, and judicious investment in talent development will underpin the industry’s trajectory, engendering a paradigm shift towards heightened efficiency, sustainability, and global competitiveness.
