As released by the FAA:

The U.S. Department of Transportation’s Federal Aviation Administration (FAA) today announced that India has been assigned a Category 2 rating under its International Aviation Safety Assessment (IASA) program, based on a recent reassessment of the country’s civil aviation authority. This signifies that India’s civil aviation safety oversight regime does not currently comply with the international safety standards set by the International Civil Aviation Organization (ICAO); however, the United States will continue to work with India’s Directorate General for Civil Aviation (DGCA) to identify the remaining steps necessary to regain Category 1 status for India. With a Category 2 rating, India’s carriers can continue existing service to the United States, but will not be allowed to establish new service to the United States.

India achieved a Category 1 rating, signifying compliance with ICAO standards, in August 1997. A December 2012 ICAO audit identified deficiencies in the ICAO-set global standards for oversight of aviation safety by India’s Directorate General of Civil Aviation (DGCA). Subsequently, the FAA began a reassessment of India’s compliance with ICAO standards under the FAA’s IASA program, which monitors adherence to international safety standards and practices. The FAA has consulted extensively with the DCGA and other relevant Indian government ministries during its evaluation, including consultations in India in September and early December, and meetings this week in Delhi.

“U.S. and Indian aviation officials have developed an important working relationship as our countries work to meet the challenges of ensuring international aviation safety. The FAA is available to work with the Directorate General of Civil Aviation to help India regain its Category 1 rating,” said FAA Administrator Michael Huerta.

The Government of India has made significant progress towards addressing issues identified during the September 2013 IASA assessment. On January 20, the Government of India took further steps to resolve outstanding issues when the Indian Cabinet approved the hiring of 75 additional full-time inspectors. The United States Government commends the Indian government for taking these important actions, and looks forward to continued progress by Indian authorities to comply with internationally mandated aviation safety oversight standards.

Additional Background on the FAA’s IASA Program:

As part of the FAA’s IASA program, the agency assesses on a uniform basis the civil aviation authorities of all countries with air carriers that operate or have applied to operate to the United States and makes that information available to the public. The assessments determine whether or not foreign civil aviation authorities are meeting ICAO safety standards, not FAA regulations.

A Category 2 rating means a country either lacks laws or regulations necessary to oversee air carriers in accordance with minimum international standards, or that its civil aviation authority – equivalent to the FAA for aviation safety matters – is deficient in one or more areas, such as technical expertise, trained personnel, record-keeping or inspection procedures.

Countries with air carriers that fly to the United States must adhere to the safety standards of ICAO, the United Nations’ technical agency for aviation that establishes international standards and recommended practices for aircraft operations and maintenance.