Yes, after you pass the examination from a different board or study Aeronautical Engineering in B.Tech along with other adjacent branches. Students from Diploma through Lateral entry will get entrance in the college's second year and they also do B Tech degree from that collage with only duration of three years, as all other three year candidates have after joining that same college.
In order to get into a university, you need to pass the eligibility criteria. These generally involve passing the diploma with a minimum percentage, which can vary between 50-60% depending on the institute, from a recognized institution. Furthermore, many universities and colleges demand you clear a lateral entry entrance exam, like LEET, JELET, or ECET.
The diploma program provides advanced knowledge in aeronautical or aerospace engineering and hence opens better opportunities in fields such as aircraft design, manufacturing, and research. It also provides you with qualifications for higher positions and competitive exams such as GATE or further studies like M.Tech.