India will invest over 980 billion rupees (USD 12 billion) in airports over the next two years, with airline orders for hundreds of new aircraft to meet surging travel demand straining existing infrastructure.
Details about As tourism recovers, India will invest $12 billion in airports over the next two years
By 2025, the country with the fastest-growing aviation industry hopes to have 220 airports, up from 148 now. About 9 billion dollars would be invested privately, with the remaining funds coming from the government-run Airports Authority of India. It involves building new terminals, undertaking greenfield initiatives, and remodeling existing buildings, including former military airfields from colonial times.
Despite operating more aircraft than the nation’s total fleet of 700, United Airlines’ existing airports in significant cities like Delhi and Mumbai are at capacity for parking and landing slots.
The action is being taken as India expands its global influence, helped by a rising consumer base and a USD 3.2 trillion economy that is on track to overtake China’s. With Air India’s last-month announcement of the largest contract in commercial aviation history, the country has already left its mark on the industry. Boeing and Airbus SE have obtained parts from India for many years.
India aims to be a global leader in air travel, according to Civil Aviation Minister Jyotiraditya Scindia, who opened the three-day CAPA India Aviation Summit on Monday. According to Boeing, India’s passenger traffic will grow at an annual pace of about 7% from 2022 to 2041, compared to China’s rate of 4.9%.
According to Jayant Mukhopadhaya, a researcher at the International Council of Clean Transportation, “growth in aviation infrastructure will bring a huge amount of economic upside and new airports will improve the quality of life for the majority of people in India.”
In addition to being a top-tier connecting center, Prime Minister Narendra Modi wants to transform India into a popular tourism and business destination. His urban development strategy calls for air links between smaller cities.
While IndiGo, the nation’s largest airline, is expected to place a larger order, Air India, which is owned by the nation’s largest conglomerate Tata Group, has ordered 470 planes. Others are bolstering their ships as well.
India is aiming to catch up to bigger aviation markets like China with these fresh purchases. According to Cirium data, the third-largest economy in Asia is selling almost 1,400 aircraft, including letters of intent, which are less definite than a formal purchase. That is almost twice as many as China, whose airport capacity is anticipated to nearly double to 450 by 2035. China currently outclasses India in terms of fleet size.
One of India’s main airport expansions is the 2,866-acre airport in Navi Mumbai built by the Adani Group, which will handle 90 million passengers by 2036. Additionally, Zurich Airport International AG is building a new terminal in New Delhi with a 70 million passenger capacity. There will be more greenfield runways constructed in Gujarat, Andhra Pradesh, and Karnataka.