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A senior official at the civil aviation ministry said they would be extending their capacity of flight operations, reports Xinhua.
Currently, domestic flight operations are allowed to function at 45 percent of their total capacity.
Last month, the ministry had cleared an increase in capacity of flight operations to 45 percent from 33 percent.
On May 21, it capped domestic flights to a third of their approved summer schedule.
The country's aviation regulator Director General of Civil Aviation had in May imposed fare limits for different bands. Domestic flights of less than 40-minute duration are supposed to have lower and upper limits of 2,000 Indian Rupees (around 28 US dollars) and 6,000 Rupees (around $85).
Flights of 150-180 minutes have 5,500 Rupees (around $78) and 15,700 Rupees (around $224) as the lower and upper limits, respectively.
According to the ministry's directive, the airlines in the country should adhere to these upper and lower fares limits during the COVID-19 pandemic period.