The government would provide Rs 4,000 crore required for the design and development of the proposed 70-100 seat National Civil Aircraft Development (NCAD) programme aimed at providing regional connectivity, union science and technology minister Vilasrao Deshmukh said on Tuesday.

Addressing a gathering at CSIR-national aerospace laboratory foundation day celebrations here, he said India was becoming a major market for civil aircraft with projections of over USD 100 billion worth of civil aircraft being required by 2025.

"In terms of numbers, this will translate into more than 1,000 aircraft in different capacities," he added.

Deshmukh said the Indian Air Force was expected to be the first launch customer for multi-purpose civilian aircraft SARAS and will be produced at Hindustan Aeronautics Limited (HAL) Kanpur.

Along with significant developments in military aviation in collaboration with Defence Research Development Organisation (DRDO), ADA and HAL, CSIR-NAL has provided the necessary base in terms of infrastructure and expertise and confidence among the aeronautical community, he said.

He expressed satisfaction at CSIR-NAL providing the seed for this growth engine by setting up a small civil aircraft design and development activity in the last two decades.

Deshmukh also said even in the worst times of global economic crisis, India recorded growth rates in excess of seven per cent due to its stable foundation and financial regulatory system.