During the next two years, India will invest approximately 980 billion rupees ($12 billion) in airport construction as pressure mounts on the country’s aging infrastructure from airline orders for hundreds of new aircraft to fulfill soaring travel demand.
The number of airports in India, which currently has 148, is expected to increase to 220 by 2025. The country’s state-run Airports Authority of India would provide the remaining funds, with private developers contributing around $9 billion. Greenfield projects, new terminals, and the refurbishment of existing facilities, including historic military airfields from colonial periods, are all part of it.
The decision was made as India expanded its worldwide presence, bolstered by a growing middle class and a $3.2 trillion GDP that is on pace to overtake China’s. The nation has already made a name for itself in the aviation industry, with Air India Ltd. signing the largest contract in the history of commercial aviation last month. For many years, Boeing and Airbus SE have purchased parts from India.
During the three-day CAPA India Aviation Summit, which began on Monday, Civil Aviation Minister Jyotiraditya Scindia declared that India wanted to be a global force in aviation. When compared to China, Boeing predicts that from 2022 to 2041, India’s passenger traffic will increase at a rate of around 7% per year.
In part because of India’s poor road system and delayed Indian railways, the expansion of aviation infrastructure will have significant economic benefits, according to Jayant Mukhopadhaya, a researcher with the International Council of Clean Transportation.
India is attempting to catch up to more developed aviation markets like China with the latest purchases. According to Cirium data, the third-largest economy in Asia has more than 1,400 aircraft on order, including less-firm letters of intent than outright purchases. That number is almost twice that of China, which plans to virtually increase the number of airports it has to 450 by 2035. Compared to India, China currently has a far larger fleet.
Adani Group’s 2,866-acre airport in Navi Mumbai, which would serve 90 million people by 2036, is one of India’s major airport initiatives. Zurich Airport International AG is building a new terminal with a 70 million passenger capacity for the capital city of New Delhi. There will be new greenfield airports built in the states of Gujarat, Andhra Pradesh, and Karnataka.
Modi’s emphasis on growth in aviation will remain high on his list of priorities. By 2035, India’s GDP is expected to grow to $10 trillion, according to the Centre for Economics and Business Research.
India is becoming one of the top choices for manufacturers wishing to relocate away from China in addition to the domestic recovery as tensions between Washington and Beijing rise. Hundreds of thousands of jobs are being created in India as more companies, like Apple Inc.’s partner Foxconn Technology Group, build facilities. So, in order to accommodate the growing demand for travel, the country requires improved airports.
Goenka added, “India is a big country, and we definitely need more airports to route traffic straight to diverse regions rather than funneling it to our already overloaded airports.
