In a thought-provoking opinion piece, former Finance Secretary Subhash Chandra Garg has challenged the notion that breaking up the dominant carrier IndiGo is the answer to India's aviation sector challenges. Writing on December 16, 2025, Garg posits that the real path to fixing India's skies lies in fostering genuine competition and implementing competent regulation.
The Core Argument Against a Breakup
Garg's analysis directly counters calls for dismantling IndiGo, which commands a significant share of the domestic passenger market. He argues that such a move would be a simplistic and potentially damaging response to complex market dynamics. Instead of punishing efficiency and scale, the focus, according to the former bureaucrat, should be on creating an environment where multiple airlines can thrive.
The central thesis is that a breakup would not automatically create a healthy, competitive market. It could, in fact, lead to operational disruptions and reduced efficiency without addressing the underlying structural issues that hinder the growth of other players.
Prescription: Competition and Smarter Regulation
So, what is the alternative? Garg's prescription is two-fold. First, the sector needs policies that actively encourage and enable the emergence of strong, viable competitors to IndiGo. This goes beyond just allowing new airlines to get an operating license. It involves examining the entire ecosystem—from airport slot allocations and ground-handling services to fuel pricing and taxation—to ensure a level playing field.
Second, and perhaps more critically, he emphasizes the need for "competent regulation." This implies a regulatory framework that is proactive, knowledgeable, and independent, capable of ensuring fair play without stifling innovation or growth. The regulator must be empowered to prevent anti-competitive practices while also facilitating infrastructure development and consumer protection.
The Road Ahead for Indian Aviation
The debate highlights a crucial juncture for Indian aviation. While market dominance by a single player raises legitimate concerns about consumer choice and pricing power, the solution is not necessarily to dismantle the successful entity. The goal should be a sustainable market structure that benefits passengers through choice, quality service, and reasonable fares, while ensuring airlines remain financially healthy.
Garg's intervention, dated December 16, 2025, calls for a more nuanced policy discussion. It urges stakeholders to look beyond the headline-grabbing idea of a breakup and focus on the harder, more systemic work of building competitive capacity and regulatory expertise. The future of India's aviation sector, as per this view, depends on smart governance and market design, not on fragmenting its most efficient operator.
