What are air taxis and how will they work in India? CII report explains

NEW DELHI: A pilot air taxi corridor linking Gurugram, Connaught Place and Jewar International Airport could sharply reduce travel time in the National Capital Region, according to a new report by the Confederation of Indian Industry.

The study says Advanced Air Mobility solutions, including Electric Vertical Take Off and Landing aircraft, could help India ease infrastructure bottlenecks by shifting a share of urban travel to low-altitude airspace.The report proposes that air taxis initially operate from rooftops of hospitals and commercial buildings and be deployed for time-sensitive missions such as medical logistics and organ transport.

Strategic co-location with hospitals, metro stations and business districts would allow integration with existing transport networks, it said.Citing severe pressure on surface transport, the report argues that Advanced Air Mobility is the logical next step for Indian cities. It suggests setting up a new regulatory body within the Directorate General of Civil Aviation to oversee the rollout of these services.

Released by Civil Aviation Minister Rammohan Naidu Kinjarapu, the report outlines a phased plan to safely integrate next-generation air mobility into the aviation ecosystem and address urban congestion.Senior officials including DGCA chief Faiz Ahmed Kidwai and Airports Authority of India chairman Vipin Kumar were present at the launch, along with industry leaders.On infrastructure, the report makes a strong case for rooftop vertiports in major metros.

“As India prepares Advanced Air Mobility, rooftop vertiports offer an efficient, scalable, and cost-effective solution, especially in cities like Delhi, Mumbai, and Bengaluru,” it said. With land acquisition for ground-based vertiports proving expensive and slow, rooftops of commercial hubs, hospitals, tech parks and residential towers are seen as a practical alternative using under-utilised real estate.However, regulatory hurdles remain. “Under the current DGCA regulations, routine commercial vertical take-offs and landings from rooftops are not yet permitted, and any future enablement would be subject to the evolution of applicable regulatory frameworks and safety assessments,” the report noted. It proposes a sequenced rollout starting with drone deliveries, followed by medical logistics and organ transport, and later air ambulance services.On funding, the report calls on public financial institutions, including SIDBI, banks and government grant agencies, to create dedicated financing instruments for Advanced Air Mobility. These could include sector-specific infrastructure funds, venture leasing models or credit enhancement facilities to lower investment risk and support long-term capital flows.