It is estimated that over the next 20 years India will buy 1,150 commercial jets valued at $130 billion to cater to the growing demand in the country. By that time, about 180 million passengers are expected to fly annually.

Kaul says the industry could expand hugely if airlines begin operations to smaller, so-called Tier 3 towns.

"Our growth is metro-based growth…regional growth is yet to come,” he added. “Regional growth is essentially when Tier 3 towns start using aircrafts and airlines start going there."

About a dozen domestic carriers began operations in India about a decade ago to take advantage of a booming economy, which created a huge middle class in India. Until then, India’s aviation sector was dominated by state-owned airlines.