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Aviation’s Talent Tug-of-War
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Good Morning. There’s never a dearth of drama or controversy in India’s aviation industry, one of the most watched and read-about sectors in the country. The latest one being an “anti-poaching” code of conduct for pilots, the regulator Directorate General of Civil Aviation (DGCA) is pushing for. It wants hiring of Indian pilots by international airlines more “transparent”. But pilots are dead against it, and have called it an overreach.
In other news, the 50% tariff imposed by Washington is well and truly in place (unless there’s a miracle), and industries are ringing alarm bells over job losses and factory shut downs. Industries have asked the government for relief amid the tariff chaos. Meanwhile, India also stands to lose what it was saving by buying discounted sanctioned Russian crude, thanks to the tariffs it will end up paying.
DECODE THE NEWS
Why India’s Pilots Say DGCA’s Anti-‘Poaching’ Push Misses The Point
What?
The DGCA has lately turned its spotlight on pilots. After announcing plans to revamp how Indian pilots are trained, the watchdog has now raised alarm over foreign airlines allegedly poaching them.
In a working paper submitted to the International Civil Aviation Organisation (ICAO) on August 1, India urged member countries to adopt a new code of conduct to regulate such hiring practices.
The paper argued that foreign carriers routinely recruit experienced pilots, engineers, and cabin crew from Indian airlines, trapping the domestic industry in a “vicious cycle” of constantly having to replace staff. That, in turn, diverts resources away from expansion and operational improvements.
It warned that the unchecked poaching of skilled Indian staff was “adversely impacting India’s ability to develop its civil aviation sector in an orderly manner.”
However, pilots aren’t happy with the DGCA’s actions. “First of all, the word poaching is used for animals. They have used this term for pilots, and it is derogatory,” Captain Sam Thomas, president of the Airline Pilots' Association of India (ALPA), told The Core.
Why?
Last week, the ALPA urged the DGCA to withdraw its proposal to the United Nations’ International Civil Aviation Organisation (ICAO), which seeks to mandate a notice period for all aviation personnel, including cockpit crew, as a way to deter poaching by foreign airlines.
“After Go Air shut down, I can give you names of captains who had to join other carriers as first officers, that is co-pilots,” Captain Sanjay Gupta, a veteran industry expert, told The Core. “Why would they do that? Because there is already an excess of pilots in the market after Go Air’s closure.”
India’s bid to curb pilot “poaching” highlights a larger challenge — protecting its aviation ambitions while competing for talent globally.
Regulators want notice periods to shield airlines, but pilots argue this limits their rights and ignores why they leave: better pay and conditions abroad. The standoff could redefine how India retains aviation talent. So, how does the DGCA justify this?
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CORE NUMBER
$37 billion
This is the value of Indian goods to the US — about 40% of its exports — that could be slashed this fiscal year, thanks to tariffs imposed by Washington on New Delhi, Reuters reported, citing analysts (more details on this later). This would erase the gains made by India — $17 billion since early 2022 — from buying discounted Russian crude.
Impact: The move complicates India’s balancing act: maintaining cheap Russian oil for energy security while repairing ties with the US, a key partner against China. New Delhi says stopping Russian oil would push global prices to $200 a barrel and spike domestic fuel costs. It accuses Washington of double standards, pointing to US imports of Russian commodities.
What's Next? As Prime Minister Narendra Modi prepares for key summits with China’s Xi Jinping and Russia’s Vladimir Putin, India faces mounting pressure to pivot without alienating Moscow. Experts warn the fallout could reshape global trade alignments, with competitors like China and Vietnam poised to fill India’s gap in US markets.
FROM THE PERIPHERY
Tariff Doom
Indian exporters are already reporting job losses in textiles, gems and jewellery, and leather as US tariffs bite. The Federation of Indian Export Organisations (FIEO) warns shutdowns are accelerating layoffs, while the Gems & Jewellery Export Promotion Council calls the impact an “earthquake” on workers. Apparel units, facing steep credit costs, have already begun cutting staff to stay afloat.
Without relief, industry bodies fear unemployment will spread further. India’s Commerce Ministry will conduct a series of meetings this week with chemicals, gems, and jewellery exporters to strategize on boosting exports to new markets and shield industries. The ministry is also rapidly progressing on the Export Promotion Mission, announced in the 2025-26 Budget, to further support market diversification efforts.
By the numbers: India’s exports to the US are set to fall steeply — from $86.5 billion in FY2025 to about $49.6 billion in FY2026 — due to Washington’s new tariff regime, according to a recent report by the Global Trade Research Initiative (GTRI).
Though 30% of India’s exports will remain duty free and 4% will face a 25% tariff, most exports (66%, worth $60.2 billion) will face a 50% tariff, rendering them uncompetitive. These include labour-intensive industries like apparel, textiles, gems & jewellery, shrimp, carpets, and furniture; exports could drop by 70%, to $18.6 billion, causing an overall 43% decline in shipments to the U.S. and endangering hundreds of thousands of jobs.
Pivot: Historically, India has had a strong foothold in US’s labour-intensive industries but these new tariffs will likely benefit India’s competitors like China, Vietnam, Mexico and Pakistan, “potentially locking India out of key markets even after tariffs are rolled back,” said Ajay Srivastava, founder of GTRI.
Next Steps: To ease pressure, exporters are asking India’s central bank (Reserve Bank of India) and government for urgent, COVID-style relief. They want a moratorium on loan repayments, lower interest through subvention schemes, and the return of pre-shipment rupee export credit. Apparel exporters also seek tax cuts for new units, government help with Provident Fund (PF) and Employers’ State Insurance Corporation (ESIC) contributions, and support to set up overseas warehouses.
Steelmakers Want More Met Coke Imports
Indian steelmakers have asked the government to increase imports of low-ash metallurgical coke by seven times, from 1.4 to 9.3 million metric tons, according to a Reuters exclusive.
The Backstory: Though India produces some met coke domestically, much of it has a high ash content. This makes it unsuitable for making the low-ash met coke needed in efficient steel production.
Catch Up Quick: In December 2024, India placed import curbs on met coke, and later extended them for another six months in June 2025. Commerce Minister Piyush Goyal is pushing local sourcing, tying it to self-reliance goals. But, steelmakers say that their capacity far exceeds domestic supply, making imports unavoidable.
Visa Wars Escalate
Since Trump’s election, the US has been cracking down on foreign students and workers, along with deporting illegal immigrants. Now, Florida governor Ronald DeSantis has said that he believes H1B visas are a “scam”.
Flashpoint: The US has been tightening norms around giving out H1B visas as well. DeSantis told Fox News, “Most of them (H-1Bs) are from one country, India, there’s a cottage industry about how all those people make money off this system.” He also said that it has enabled companies to replace American workers with cheaper foreign resources.
Future: Indians comprise the largest group among US H-1B visa holders, followed by the Chinese. Indians are also the second-largest immigrant group in the US. The Trump administration has long been making noises about the visa processes, and is reportedly planning an overhaul as well.
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