What is an air taxi? How do they work in India? CII report explained | India News

New Delhi: A pilot air taxi corridor connecting Gurgaon, Connaught Place and Jewar International Airport could significantly reduce travel time in the national capital region, a new report by the Confederation of Indian Industry said. The study said advanced air mobility solutions, including electric vertical take-off and landing aircraft, could help India alleviate infrastructure bottlenecks by shifting some urban travel to lower-altitude airspace.The report recommends that air taxis initially operate from the rooftops of hospitals and commercial buildings and be deployed for time-sensitive tasks such as medical logistics and organ transport. Strategic co-location with hospitals, metro stations and commercial areas will facilitate integration with existing transport networks, the report said.Citing severe pressures on ground transport, the report sees advanced air mobility as the logical next step for Indian cities. It recommended setting up a new regulatory body within the DGCA to oversee the rollout of these services. The report, released by Civil Aviation Minister Rammohan Naidu Kinjarapu, outlines a phased plan to safely integrate next-generation air traffic into the aviation ecosystem and address urban congestion.The launch was attended by senior officials and industry leaders including DGCA Director General Faiz Ahmed Kidwai and Airports Authority of India Chairman Vipin Kumar.

On the infrastructure front, the report makes a strong case for rooftop vertical airports in major metros. “As India prepares for advanced air mobility, rooftop vertical airports offer an efficient, scalable and cost-effective solution, especially in cities such as Delhi, Mumbai and Bengaluru,” the report said. As land acquisition for ground-based vertiports is costly and slow, rooftops on commercial centers, hospitals, technology parks and residential buildings are seen as a practical alternative to leverage underutilized real estate.However, regulatory hurdles remain. “Routine commercial vertical takeoff and landing from rooftops is not yet permitted under current DGCA regulations and any future launch will depend on the evolution of the applicable regulatory framework and safety assessments,” the report states. It recommends a sequential rollout, starting with drone delivery, followed by medical logistics and organ transport, and finally air ambulance services.On the funding front, the report calls on public financial institutions, including SIDBI, banks and government funding agencies, to create dedicated financing instruments for advanced air mobility. These may include sector-specific infrastructure funds, risk leasing models or credit enhancement facilities to reduce investment risk and support long-term capital flows.