India Invests Rs 960 Billion to Boost Aviation Growth

28 Jul 2025 CW Team

Civil Aviation Minister K. Rammohan Naidu presented detailed data in Parliament highlighting India’s robust investment in aviation infrastructure and the sector’s continued growth.

From FY 2019–20 to FY 2024–25, India’s aviation sector has witnessed capital expenditure exceeding Rs 960 billion, covering investments made by the Airports Authority of India (AAI) and public-private partnership (PPP) entities.

The minister noted that India currently operates 162 airports, including traditional airports, heliports, and water aerodromes. During FY 2024–25, total passenger traffic reached 412 million, comprising 335 million domestic and 77 million international passengers—a 9 per cent increase year-on-year.

Scheduled Indian carriers served 835 domestic and 251 international routes, reflecting the sector’s expanding network.

Naidu also underscored the impact of the UDAN (Ude Desh ka Aam Nagrik) scheme, launched in 2016 under the Regional Connectivity Scheme (RCS). It has operationalised 637 routes, connecting 92 previously underserved or unserved airports, including 15 heliports and two water aerodromes. Airfares for subsidised seats under Viability Gap Funding (VGF) remain capped at government-determined rates to ensure affordability.

Modernisation and expansion of airport infrastructure is described as a continuous, demand-driven process, undertaken by either AAI or relevant operators based on traffic trends, safety, viability, land availability, and airline requirements.

Regarding new developments, Naidu referred to the Greenfield Airports Policy, 2008, which requires developers—including state governments—to identify viable sites, conduct feasibility studies, and submit proposals to the Centre. No proposals have been submitted for new airports in Palghar (Maharashtra), or Pachmarhi and Matkuli (Madhya Pradesh).

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