India is upgrading airport infrastructure to meet growing demands
AVIATION & AIRPORTS

India is upgrading airport infrastructure to meet growing demands

The aviation sector in India is currently experiencing a transformative phase, fuelled by its status as home to the world's fastest-growing air passenger market. We are positioned to become the third-largest aviation market globally, following China and the USA. By the end of 2030, domestic air passenger traffic is projected to reach 300 million. Recognizing this opportunity, the government has allocated approximately $11 billion for the construction of new airports and the refurbishment of existing ones. India's airport infrastructure has seen remarkable growth over the past decade. The number of operational airports has surged from 70 to 149, reflecting a growing demand for air travel. In recent years, especially post-COVID, passenger traffic has shown a robust recovery. The Indian aviation sector was catering to approximately 138.9 million domestic passengers in May of 2024, significantly higher by around 1 % than pre-COVID levels. The combination of increasing passenger traffic and supportive government policies positions India's aviation sector for continued growth and modernization. Government initiatives, particularly the UDAN (Ude Desh ka Aam Naagrik) scheme, have played a pivotal role in enhancing regional connectivity. This scheme aims to make air travel affordable and widespread, significantly impacting tier-2 and tier-3 cities by increasing their access to air transport. The aviation infrastructure market in India is poised for significant growth, projected to reach $ 121 billion by 2029, with a compound annual growth rate (CAGR) of 4%. This expansion is underpinned by substantial investments from both government and private sectors, with an estimated contribution of around $ 25 billion expected by 2027. The active involvement of private entities through Public-Private Partnerships (PPP) is essential, as it introduces expertise and efficiency into airport operations, thereby enhancing service quality and operational effectiveness. These investments if done right in long term has the potential to contribute up to $1 trillion annually to the Indian economy by 2043. Looking ahead, India will require over 2,800 new commercial airplanes over the next 20 years to meet this demand. Plans are underway to increase the number of operational airports to 200 and expand the aircraft fleet to 2,000, ensuring that the aviation sector can accommodate the anticipated surge in passenger traffic. However, this ambitious expansion faces challenges, including land scarcity and the need for substantial investment—estimated at over $ 40 billion by 2047. Existing airports are nearing saturation, particularly in metropolitan areas, highlighting the urgent need for new facilities and upgrades to current infrastructure. The development and expansion of airports will also contribute to solving one of the major problems of unemployment in India. It is expected that by this year 3,50,000 will be employed directly in the aviation and aeronautical manufacturing sector. The strategic investments and policies being implemented today will lay the groundwork for a resilient and efficient aviation sector that can support India's aspirations as a global aviation powerhouse. With continued focus on infrastructure development, India is poised to harness the full potential of its aviation sector, driving economic growth and enhancing connectivity for millions of citizens.

The aviation sector in India is currently experiencing a transformative phase, fuelled by its status as home to the world's fastest-growing air passenger market. We are positioned to become the third-largest aviation market globally, following China and the USA. By the end of 2030, domestic air passenger traffic is projected to reach 300 million. Recognizing this opportunity, the government has allocated approximately $11 billion for the construction of new airports and the refurbishment of existing ones. India's airport infrastructure has seen remarkable growth over the past decade. The number of operational airports has surged from 70 to 149, reflecting a growing demand for air travel. In recent years, especially post-COVID, passenger traffic has shown a robust recovery. The Indian aviation sector was catering to approximately 138.9 million domestic passengers in May of 2024, significantly higher by around 1 % than pre-COVID levels. The combination of increasing passenger traffic and supportive government policies positions India's aviation sector for continued growth and modernization. Government initiatives, particularly the UDAN (Ude Desh ka Aam Naagrik) scheme, have played a pivotal role in enhancing regional connectivity. This scheme aims to make air travel affordable and widespread, significantly impacting tier-2 and tier-3 cities by increasing their access to air transport. The aviation infrastructure market in India is poised for significant growth, projected to reach $ 121 billion by 2029, with a compound annual growth rate (CAGR) of 4%. This expansion is underpinned by substantial investments from both government and private sectors, with an estimated contribution of around $ 25 billion expected by 2027. The active involvement of private entities through Public-Private Partnerships (PPP) is essential, as it introduces expertise and efficiency into airport operations, thereby enhancing service quality and operational effectiveness. These investments if done right in long term has the potential to contribute up to $1 trillion annually to the Indian economy by 2043. Looking ahead, India will require over 2,800 new commercial airplanes over the next 20 years to meet this demand. Plans are underway to increase the number of operational airports to 200 and expand the aircraft fleet to 2,000, ensuring that the aviation sector can accommodate the anticipated surge in passenger traffic. However, this ambitious expansion faces challenges, including land scarcity and the need for substantial investment—estimated at over $ 40 billion by 2047. Existing airports are nearing saturation, particularly in metropolitan areas, highlighting the urgent need for new facilities and upgrades to current infrastructure. The development and expansion of airports will also contribute to solving one of the major problems of unemployment in India. It is expected that by this year 3,50,000 will be employed directly in the aviation and aeronautical manufacturing sector. The strategic investments and policies being implemented today will lay the groundwork for a resilient and efficient aviation sector that can support India's aspirations as a global aviation powerhouse. With continued focus on infrastructure development, India is poised to harness the full potential of its aviation sector, driving economic growth and enhancing connectivity for millions of citizens.

Next Story
Building Material

Ambuja Cements Drags JSW Cement to Court Over ‘Kawach’ Brand

Ambuja Cements, part of the Adani Group, has filed a trademark infringement case against JSW Cement in the Delhi High Court, alleging that its rival copied the ‘Kawach’ brand with its new product ‘Jal Kavach’.Justice Manmeet Pritam Singh Arora issued summons to JSW Cement and its subsidiary, JSW IP Holdings Pvt Ltd, while referring the matter to mediation. Hearings are scheduled to resume on October 15 if no settlement is reached.Ambuja, which registered the ‘Kawach’ trademark in 2019, argues that the term ‘Kavach’—meaning shield—is the distinctive feature of its branding. ..

Next Story
Technology

Bentley Systems Named Innovation Partner of the Year 2025 by Afcons

Bentley Systems, the infrastructure engineering software company, has been recognised by Afcons Infrastructure Limited as its Innovation Partner of the Year 2025 at the Innovation Partners 2025 Felicitation Ceremony in Mumbai. The award acknowledges Bentley’s contribution to Afcons’ engineering digitalisation journey through an enterprise agreement providing access to over 250 Bentley engineering software tools. This adoption has enabled Afcons to accelerate project delivery, standardise digital workflows, and strengthen innovation across its infrastructure portfolio. Among key i..

Next Story
Infrastructure Urban

SBI Sells 13.18% Stake in Yes Bank to Japan’s SMBC

State Bank of India (SBI) has completed the sale of a 13.18 per cent stake in Yes Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC) for over Rs 8,889 crore. The divestment is part of a Rs 13,482 crore deal finalised in May with SMBC and seven private banks.Following the transaction, SBI’s shareholding in Yes Bank stands at 10.8 per cent. The deal, involving 4,134.4 million shares at Rs 21.50 each, is the largest cross-border transaction in the Indian banking sector.SBI Chairman C S Setty described the 2020 RBI-led rescue of Yes Bank as a pioneering public-private partnership, addi..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?