The Indian aviation sector has become one of the main drivers of economic growth for the nation, boosting connectivity, trade, tourism, and foreign investment. India has a population of more than 1.4 billion with a substantial middle class with high growth rates, and that has generated exponentially higher air travel demand in India in the past decade. The strategic development of airports—not just in metro, but also tier-2 and tier-3 cities—has been a significant contributor to taking a strong part in regional economic development, employment generation, infrastructure development, and overall GDP growth. With India set to become a $5 trillion economy by this decade, the expansion and development of its airport infrastructure are emerging as a key driver of inclusive and sustainable growth.
India is the world’s third-largest domestic air transport market, behind only those of the United States and China. Indian airlines transported over 157 million domestic passengers in 2023, a sharp rebound and 59% rise from pandemic-hit 2021 levels, the Directorate General of Civil Aviation (DGCA) reported. Overseas, over 63 million passengers flew into and out of India, reflecting increased integration with the world market. This growth in aviation has been triggered by the need for a robust and modern airport infrastructure that can handle more passengers and freight effectively.
India has 148 operational airports, of which 35 are international, 103 domestic, and 10 customs airports as of 2024. The UDAN (Ude Desh ka Aam Nagrik) scheme was launched by the government in 2017 with an objective to give priority to the enhancement of regional connectivity by providing functional airports to unserved and underserved regions. More than 450 new air routes have been brought into operation under UDAN, connecting remote locations such as Kurnool, Jharsuguda, and Pakyong, thus significantly enhancing local economies by giving them improved access to markets, healthcare, and tourism. The economic multiplier impact of airports is significant. ICAO projects that every $100 million spent on airport capital generates $350 million of GDP and more than 1,500 direct and indirect employment. Oxford Economics, in a report, put aviation at creating 6.2 million jobs and more than $72 billion for Indian GDP by 2023, and it accounted for approximately 2.1% of the economy. These include airports, airlines, ground handlers, freight forwarders, travel agencies, and allied industries.
Airport modernization has also played a significant role towards the logistical efficiency in India.
Air freight constitutes a relatively smaller quantum but comprises high-value as well as time-sensitive items such as electronics, pharma, and perishables. Indian airports have seen record 3.1 million metric tonnes of cargo in FY 2023, a steep bounce back from pandemic-era troughs. Airports such as Delhi (IGI), Mumbai, and Hyderabad have increased cargo terminals, added cold chain facilities, and turned digital with cargo community systems to reduce dwell time and improve traceability. The Gati Shakti National Master Plan published in 2021 has strengthened airport development within overall infrastructure planning even further.
By positioning airports along economic corridors, industrial clusters, and logistics parks, the government is aligning airports as regional development anchors. For instance, the recently opened Jewar International Airport in Uttar Pradesh will be capable of serving 12 million passengers per year in phase one and boost economic development in the National Capital Region through investments in tourism, real estate, and logistics. Tourism is another of the big gains from airport growth.
With growing aviation connectivity to areas such as the Northeast, Andaman and Nicobar Islands, and pilgrimage centers such as Varanasi and Ayodhya, Indian foreign tourist arrivals (FTA) have registered growth. FTA was more than 8.4 million in 2023, which resulted in more than $25 billion in tourist revenues. Domestic tourism, which reached 1.8 billion trips, is equally reliant on efficient airport infrastructure. Better airport appearances, hassle-free immigration, better facilities, and green certification are also rendering India a progressively competitive global destination for tourists. Privatization has played a significant role in enhancing the efficiency of Indian airports on the job. Airports Authority of India (AAI) has adopted a public-private partnership (PPP) framework to construct major airports. Privatised airports at Delhi, Mumbai, and Bengaluru have consistently topped world airport service quality rankings. The Adani Group, for instance, operates seven major airports like Ahmedabad, Lucknow, and Mangaluru and will invest ₹25,000 crore over five years to boost passenger traffic and cargo facilities. Greenfield airport projects are being developed throughout the country to meet future requirements. Jewar has other mega airport projects such as Mopa (Goa), Dholera (Gujarat), and Purandar (Maharashtra) with different stages of development or clearance. India is expected to have 220 airports by 2030 with a total investment of more than ₹1.5 lakh crore from governments and private entities, as per the Ministry of Civil Aviation.
Sustainability is also gaining traction in airport master planning. Indian airports are accelerating the use of renewable energy, rainwater harvesting, solar energy, and recycling procedures. Indira Gandhi International Airport (New Delhi) and Rajiv Gandhi International Airport (Hyderabad) are Carbon Neutral Level 4+ certified, placing India among the leading nations of sustainable aviation globally. These green credentials not only confirm India’s Paris Agreement climate actions, but they are also building investor and tourist trust.
There are, however, difficulties.
Airport congestion, especially among the major metropolitan airports, still taints the passenger experience and results in delays. Land acquisition to construct new airports is often politically charged and requires years. Inefficiencies of the bureaucracy and legacy air navigation systems also hinder modernization. Shortages of qualified human resources, especially among air traffic controllers and aircraft maintenance, are long-term capacity challenges. These issues must be addressed through inter-agency coordination, increased policy transparency, and stronger skilling initiatives such as the Aviation Skill Development Council (ASDC) programs. Airport operations digitalization is another mammoth potential area. From digital passport recognition (DigiYatra) to electronic boarding, and from artificial intelligence-driven security baggage handling to Internet of Things (IoT) security, the future of smart airports is the smart way. Not only are these technologies making processes more efficient, but also cheaper to operate, more secure, and easy on the passenger experience. India airport future belongs to getting entirely integrated digital systems with multimodal connectivity and integration with smart cities.
In short, Indian airports have evolved from being just transit points to economic centers that help shape regions, foster global trade, drive tourism, and generate jobs.
As India continues to invest in aviation technology and infrastructure, the function of the airports will become increasingly important to the economic ambitions of the nation. century.
Prepared by
Sureshkumar Mandala
Assistant Professor, School of CS&AI,
SR University, Warangal, Telangana 506371
m.suresh@sru.edu.in
