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India’s Pilot Crunch Puzzle
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Good Morning. Did you know that India issues more than 1,000 flying licences a year? Yet, whenever there are flight cancellations, delays or higher demand during festive seasons, airlines often blame it on a shortage of pilots. But look closer, and you’d see the problem is deeper than just numbers. Flying schools are churning out graduates, yet bottlenecks on the way are creating this perceived shortage.
In other news, household expenses are rising in India, squeezing budgets. Meanwhile, on this week’s Build On Blockchain, how the technology can help make government data more transparent and accessible.
DECODE THE NEWS
India’s Pilot Shortage Looks A Lot Like A Bottleneck
What?
For months now, the refrain has been loud and consistent: India has a pilot shortage. Airlines have said this repeatedly when flights are cancelled. Government officials cite it as a challenge to ambitious fleet expansion. Industry groups warn it could stall the country’s rise as the world’s fastest-growing aviation market.
But is the shortage real? Or is it a case of mismatched supply and demand?
With airlines ordering hundreds of new aircraft, training academies graduating thousands of cadets, and regulators struggling to keep pace, India’s pilot ecosystem sits at a crossroads.
Experts believe that the so-called shortage is less a question of numbers and more a problem of hierarchy, hiring practices, and system bottlenecks. While hundreds of fresh commercial pilot licence (CPL) holders wait for opportunities, airlines say they lack enough experienced commanders.
Flying schools churn out graduates, but many remain underutilised. As global carriers recruit Indian captains, the gap between perception and reality widens.
Why?
India’s aviation industry is seeing unprecedented expansion. Passenger traffic is booming, airports are congested, and airlines are in shopping mode like never before. IndiGo alone has placed orders for more than 1,000 aircraft, Air India nearly 500, while Akasa, SpiceJet, and others are also scaling up.
With this fleet growth, demand for pilots should be surging. Forecasts suggest India will need 35,000–40,000 new pilots in the next decade, with at least 7,000 required by 2026.
Aviation expert Manish Sinha argued that the problem was not a lack of pilots, but a system that produces what he called an “artificial shortage.”
“We have 36 academies producing pilots,” he explained. “But they are just left on their own. On one hand, there is a shortage of pilots in scheduled carriers. On the other hand, pilots are moving with CVs, ready to take up even clerical jobs. The mismatch is glaring.”
He cited examples of training batches where only half the graduates find jobs. “When schools introduce around 200 pilots, why are only 100 getting absorbed? Either the employers are finding a mismatch, or the training isn’t aligned. That needs to be fixed.”
India’s aviation is booming, fleets are expanding, and pilot schools keep churning out graduates. Yet airlines still claim “shortage.” So, is India really running out of pilots — or are its training, hiring and career pipelines broken?
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BUILD ON BLOCKCHAIN
Blockchain Gets A Government Job
What?
Some governments are taking steps to ensure the economic data they issue can always be taken at face value.
Just last week, two very different countries — the United States and the Philippines — took to blockchain to address this trust deficit.
According to Bloomberg, the US is posting its GDP numbers on public blockchains, while lawmakers in the Philippines are exploring putting the entire national budget there.
Why?
The adoption of blockchain to carry important economic data is tantamount to a seal of approval on a technology that is now being used for purposes far beyond its origins in cryptoverse.
The new platform being used by the US isn’t replacing the usual reports; this is just another way to share numbers that nobody can manipulate.
Why Does It Matter?
The move by the US government matters because GDP numbers can move markets, and everyone, including investors, traders and policymakers, pays attention.
Putting the numbers on a blockchain means anyone can verify the numbers and ascertain their credibility.
Where does India stand?
Brought to you in partnership with Algorand India.
CORE NUMBER
Rs 56,000
This is how much Indian households now spend every quarter on average, up from about Rs 42,000 in 2022, according to Worldpanel by Numerator’s new Kharcha 3.0 survey.
Why it matters: Rising household expenses are squeezing budgets across both urban and rural India, reflecting broader financial stress and shifting consumption patterns.
Urban spenders: Rs 73,579 per quarter as of March 2025, up from Rs 52,711 in June 2022.
Rural rebound: Rs 46,623, rising sharply from Rs 36,104 over the same period.
Strain showing: 45% of households say they are struggling to manage expenses, while only 17% feel financially comfortable.
What they’re saying: “With rising expenses across both urban and rural segments and most families prioritising essentials, savings, and debt repayment, consumers are becoming increasingly cautious in their choices,” said K Ramakrishnan, managing director–South Asia, Worldpanel by Numerator.
The big picture: Consumers are cutting back on premium buys and leaning harder on essentials, local brands, savings, and debt repayment — signalling cautious households and tougher terrain for brands.
FROM THE PERIPHERY
An Alternative to Rare Earths?
Sterling Gtake E-Mobility, an autoparts manufacturer, is currently fast-tracking tests on its ferrite or “light” rare-earths motor technology, which doesn’t rely on imported rare earths or magnets from China. Seven Indian automaker companies are reviewing the motors, and if they clear it, Sterling can begin production within a year, according to a Reuters report.
Catch Up Quick: Though India has 8% of global rare earth reserves, it doesn’t have enough capacity to refine them. When China blocked rare exports in April, in response to US tariffs, several Indian industries worried about a standstill in production.
The Shift: Since then, India and China have begun mending fences. China even promised to lift rare earth curbs to India during foreign minister S. Jaishankar’s recent visit to Beijing. But, it hasn’t provided a clear timeline on it yet.
Dealers To Display Price Drops
The Ministry of Heavy Industries (MHI) has asked carmakers and two-wheeler manufacturers to put up posters at dealerships showing old and new prices after the recent GST cuts. The directive, routed through the Society of Indian Automobile Manufacturers (SIAM), also requires posters to carry Prime Minister Narendra Modi’s photo.
What's Next? Companies are designing posters and seeking ministry approval before rollout. Costs, estimated at Rs 20–30 crore, may be shared between firms and dealers. Posters will be in local languages, though firms are unsure if each version needs separate approval.
Catch Up Quick: Luxury carmakers are exempt. Automakers like Maruti, Hyundai, Tata Motors, Mahindra, Toyota, and Kia have already passed GST benefits to customers. The GST Council cut tax on small cars to 18% from up to 31% and large cars to 40% from 50%. Posters will be displayed this week..
India, EU Eye Year-End Deal
India and the European Union are holding high-stakes trade negotiations in New Delhi this week, seeking to resolve disputes over agriculture, dairy and non-tariff barriers to meet an ambitious year-end deadline for a deal, Reuters reported.
Context: Talks, relaunched in 2022, have gained urgency after US President Donald Trump doubled tariffs on Indian goods to 50% last month over Russian oil imports, hitting exports such as textiles and chemicals. Brussels, also facing Trump’s tariffs, has stepped up its global trade push with recent deals with Mexico and Mercosur, and ongoing talks with India, Indonesia and the UAE.
The Scoop: So far, 11 of 23 chapters are closed, covering customs, digital trade, intellectual property and subsidies. But major sticking points remain: EU demands for farm, auto and liquor access; India’s resistance to dairy; and disputes over food safety, labour, environment and quality control rules.
Too Much Monsoon
India’s excess rainfall this year isn’t all good news. While a good monsoon is a boon for India’s agriculture, persistent heavy rainfall could likely lead to crop damage, said rating agency CRISIL. In Punjab, which saw the worst floods in decades, it is likely that paddy, cotton, and cauliflower crops could face damage. Maize, cotton, bajra, jowar, green gram, and black gram may see risks in Rajasthan.
The Context: Much of India’s farmland is still primarily irrigated by rain, and erratic rainfall is a major concern. Damaged crops could hurt yields and, in turn, lead to food inflation.
What Next? The CRISIL report said that kharif crops such as paddy, cotton, soybean, maize, and onion need to be monitored as rains in September coincided with growth stages of these crops. More rains could “losses could intensify supply-side pressures, raise food inflation risks and weigh on consumption and price stability,” it said.
PODCASTS
The Markets Return To Pre 50% Tariff Levels
On Episode 673 of The Core Report, financial journalist Govindraj Ethiraj talks to Anuj Gupta, Commodity Expert, Suresh Narayanan, former Chairman and Managing Director of Nestle India as well as Apoorva Bajaj, Founder of Edubuk.
The markets return to pre 50% tariff levels as economy appears to absorb shocks.
Another $20 billion of IPOs could come this year
How Indian consumers are satiating their appetite for gold despite prices rising to record levels.
Pressured Indian households will welcome lower prices on items of daily consumption. But household priorities have changed too.
How a university in the US confirms whether a certificate from an Indian university is a genuine one.
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