New Delhi: India’s aviation sector is poised for a major transformation as the country ramps up its airport infrastructure investment. With increasing urbanization, a burgeoning middle class, and rapid economic growth, air travel demand has surged and is set to continue its upward trend. The Airports Authority of India (AAI) and private operators are planning to invest INR 60,000 crore (approximately 70.6 billion USD) by FY27, aimed at modernizing and enhancing airport facilities across the nation.
This investment is expected to play a key role in meeting the rising air travel demand, significantly enhancing passenger experience, boosting airport capacity, and improving overall efficiency. The Indian government’s ambitious scheme, Ude Desh Ka Aam Naagrik (UDAN), which translates to “common people fly,” has seen considerable success, connecting smaller cities and contributing to the surge of travelers. Projections indicate the aviation sector will grow between 10-12 percent annually over the coming years.
Prior to the pandemic, India ranked as the world’s third-largest aviation market based on the number of domestic air passengers, and even with the temporary disruptions caused by COVID-19, the industry is rebounding swiftly. Experts estimate the number of air passengers could reach 500 million annually by 2035, underlining the need for expanded airport infrastructure.
Many airports are currently operating beyond intended capacities, leading to crowded terminals and lengthy wait times. To tackle these challenges, authorities are focusing on constructing new terminals and enhancing existing infrastructures. For example, the Indira Gandhi International Airport in Delhi is working on expansion plans to accommodate 10 million more passengers annually. Similarly, the Chhatrapati Shivaji Maharaj International Airport in Mumbai is undergoing redevelopment to increase its handling capacity to 90 million passengers per year by 2029.
Regional and smaller airports will also benefit from this growth surge. The UDAN scheme aims to improve connectivity to underserved areas, which necessitates substantial investment to upgrade these facilities. These improvements will include enhanced terminals, new passenger amenities, and upgraded ground handling operations.
Complementing terminal enhancements, investments are also earmarked for airside infrastructure. Airports will extend runways to support larger aircraft and international flights, and additional taxiways and apron spaces will promote smooth aircraft movements, reducing wait times and improving overall efficiency.
With air travel becoming increasingly competitive, improving passenger services has risen to the top of airport authority agendas. Plans to modernize lounges, restrooms, food courts, and other amenities are underway, coupled with technology implementations such as biometric check-in and automated kiosks to shorten waiting periods.
One significant development is the integration of Artificial Intelligence (AI) and Internet of Things (IoT) solutions to optimize operations and provide seamless experiences for passengers. AI can facilitate predictive maintenance, baggage handling, and even manage crowds at busy airports.
Environmental sustainability is another focus area, with airports installing solar power systems, rainwater harvesting systems, and waste management programs to mitigate their ecological footprints. Many airports are also pursuing Green Building certifications, such as LEED, with aims of becoming carbon-neutral through investments in electric vehicles and alternative energies.
A large portion of the upcoming investments will come from private players, particularly through public-private partnerships (PPPs). Over recent years, the involvement of private sectors has intensified, with many significant airports upgraded under private management. The government fosters this investment climate through favorable regulations, allowing private players to reap benefits through long-term lease agreements.
These airport projects not only aim to enrich passenger experiences but also promise economic advantages. The expansion of airport facilities is projected to create thousands of jobs across various sectors, including construction, hospitality, aviation, and retail. The heightened connectivity and increased capacity are also set to stimulate tourism, trade, and business travel, significantly enhancing economic growth.
With efficiency improvements, India’s stature as a global aviation hub will strengthen, opening new avenues for international airlines and cargo operations. The ambitious INR 60,000 crore investment plan signals India’s commitment to advancing its airports by FY27, aligning with the soaring demand for air travel. By investing wisely, leveraging technology, and embracing sustainable practices, India is primed to develop some of the most advanced airports worldwide, supporting its ascent as a leader in global aviation.
