For decades, India’s aerospace ambitions revolved around major metros. But a quieter transformation is underway. As demand for regional air mobility grows, Tier-2 cities are gaining ground—attracting investment, nurturing skilled talent, and laying the groundwork for the country’s next aerospace leap. The map is expanding, and so is the opportunity.
I. The Talent Engine: Building from the Ground Up
The cornerstone of this transformation is talent—and Tier-2 cities are rising to the occasion. In Maharashtra’s Amravati, a city that until recently lacked even basic commercial air connectivity, India’s largest flying training organization (FTO) has been inaugurated in 2025. Backed by Air India and MADC, this facility is designed to train 180 pilots annually, with a fleet of 34 training aircraft.
II. From Tier-2 to Tarmac: Tech & Manufacturing Shift Gears
Perhaps the most striking sign of the Tier-2 shift is in Nagpur, where the MIHAN SEZ is evolving into a full-fledged aerospace industrial ecosystem.
- Dassault-Reliance Aerospace plans to locally assemble Falcon 2000 LXS business jets, with the goal of producing up to 22 aircraft per year by 2028, creating over 1,000 high-skilled jobs.
- Max Aerospace has committed ₹8,000 crore (~$960M) to set up a helicopter manufacturing facility across 150 acres in the same region, expected to generate 2,000+ jobs.
This is not isolated. In Uttar Pradesh, the ₹300-crore BrahMos missile plant inaugurated in Lucknow in May 2025 is set to employ 500 engineers directly and create over thousands of indirect jobs—marking a major shift of high-tech defense manufacturing to Tier-2 cities.
III. Regional Takeoff: Where Infrastructure Meets Ambition
India’s UDAN (Ude Desh ka Aam Naagrik) scheme, launched by the Ministry of Civil Aviation, aims to enhance regional air connectivity by bridging the air infrastructure gap across Tier‑2 and Tier‑3 cities, UDAN has become a catalyst for balanced economic development.
Big Budget, Bigger Vision In the 2025 Union Budget, the government reaffirmed its commitment to the scheme with a focused expansion strategy:
- 120 new destinations are to be connected over the next decade, under the same scheme, 619 routes connecting 88 airports, including two water aerodromes and 13 heliports, have been operationalized so far benefitting 1.4 crore passengers.
- Aiming to serve 4 crore additional passengers, the plan addresses both regional demand and capacity-building.
- ₹540 crore has been allocated by the government to support this growth.
By integrating smaller cities into the national air network, UDAN is creating the foundation for India’s Aerospace 2.0 to grow from the ground up.
IV. Skilling the Skies: Capacity-Building Across Tier‑2 India
India’s regional aviation workforce is strengthening through targeted training and skilling programs across multiple Tier‑2 cities:
- Amaravati Drone Summit: Over 5,000 drones participated in the event, and the government laid out ambitious goals to train 20,000 drone pilots and create 30,000 jobs, supported by ₹2,000 crore in public-private investment.
