The Union Budget in February aimed to upgrade air cargo infrastructure, focusing on warehousing, cargo screening, and customs protocols to enhance efficiency and promote business ease. India must develop its freight industry if it hopes to become a major hub for international aviation.
Rising air passenger traffic
In 2024, domestic airlines operated 1.02 million scheduled flights, carrying 146.4 million passengers, while 64.5 million travelled on international routes via scheduled Indian and foreign operators. Domestic air passenger traffic has more than doubled over the past decade due to Indian airlines expanding their fleets and growing demand for long-haul and ultra-long-haul routes.
With India’s rapidly growing air cargo industry, expanding greenfield airports and enhancing existing airport capacity are crucial for sustaining the continued growth of civil aviation. Twelve of the 21 greenfield airports that the Union Government has authorised for construction are currently in use.
According to Jaideep Mirchandani, Group Chairman of Sky One, “Two major international airports, Noida (Jewar) and Navi Mumbai, are also expected to open soon. There are also major capacity expansion projects planned at existing domestic terminals under the Regional Connectivity Scheme (UDAN). Developing adequate infrastructure will help the country keep pace with rising passenger volumes and prevent overcrowding and congestion at major airports.”
A report by CRISIL Ratings states that Indian airports will incur a cumulative capital expenditure of over Rs 60,000 crore in the three years through fiscal 2027.
