Rising demand for air travel and the need for better air connectivity have driven advancements in India’s airport infrastructure. The development of greenfield airports and expansion works at existing ones have notably enhanced passenger handling capacities and improved connectivity especially in untapped regions. India currently has over 160 airports, including heliports and water aerodromes. During 2025-26, until February 2026, these airports handled a total of 385.58 million passengers, growing by around 2.6 per cent in comparison to the same period in 2024-25. During this period, freight handled at these airports grew 7.2 per cent to reach 3.62 million metric tonnes (mmt).
The operationalisation of the Navi Mumbai International Airport in Maharashtra in December 2025 has been a key milestone for the sector. The airport’s initial phase is designed for a capacity of 20 million passengers per annum (mppa). In the future, the airport will feature a total of four terminals with a capacity of 90 mppa. Meanwhile, the Noida International Airport in Uttar Pradesh will also start commercial operations soon. The airport will operate at a capacity of 12 mppa, to be increased to 70 mppa in a phased manner. Further, the upcoming greenfield Bhogapuram airport in Andhra Pradesh carried out a validation flight in January 2026. Moreover, the foundation stone has also been laid for a civil enclave at Bihta in Bihar, and in-principle approval has been received for the development of Puri airport in Odisha.
Several new airports are at various stages of planning and approval, including Madhubani, Saharsa and Bhagalpur in Bihar; Rameswaram and Hosur in Tamil Nadu; Kothagudem in Telangana; and Kuppam, Srikakulam, Dagadarthi and Ongole in Andhra Pradesh.
As for brownfield expansion, new terminals have been inaugurated at airports such as Patna in Bihar, Thoothukudi in Tamil Nadu, Hollongi in Arunachal Pradesh, Purnea in Bihar, Guwahati in Assam and Halwara in Punjab. On the airside, airports have seen the commissioning of new taxiways to reduce aircraft taxiway time and enhance operations. Capacity expansion works are also underway at airports in Delhi; Rajahmundry and Vijayawada in Andhra Pradesh; Bengaluru and Belagavi in Karnataka; Jaipur in Rajasthan; and Ahmedabad in Gujarat.
On the connectivity front, the Regional Connectivity Scheme-Ude Desh Ka Aam Naagrik (RCS-UDAN) has played a key role in democratising air travel and boosting regional connectivity. As of February 28, 2026, the scheme has operationalised a total of 663 routes, connecting 95 unserved and underserved airports, including 17 heliports and two water aerodromes. In a notable development, the Union Cabinet approved the launch and implementation of the modified UDAN scheme on March 25, 2026 for a 10-year period from 2026-27 to 2035-36, with a total outlay of Rs 288.4 billion. The scheme proposes the development of 100 airports at existing unserved airstrips, provision of operations and maintenance support for around 441 aerodromes, development of over 200 modern helipads and support for the acquisition of indigenous aviation assets.
With a focus on services, the Airports Economic Regulatory Authority of India formulated a framework for performance standards at major airports and put out a draft consultation paper in August 2025. It covers areas including quality, continuity and reliability of services, while aiming to improve transparency, reliability and accountability. These standards would also be linked to tariff mechanisms through rebates and incentives. While this is a positive step in enhancing service levels at airports and a stimulus for the adoption of best practices, gaps in terms of responsibility and liability allocation, implementation mechanisms, and imbalances between rebates and incentives have been highlighted by stakeholders.
Key emerging trends
Dual airport systems
The sector is witnessing the emergence of dual-airport systems across the country, with the existence of two airports in a region expected to ease congestion and enhance connectivity. For instance, Goa has Dabolim airport and Mopa airport. The operationalisation of the airport in Navi Mumbai has complemented the existing airport at Mumbai, forming a dual-airport system in the Mumbai Metropolitan Region, while the soon-to-be-operationalised airport at Noida would enable a similar set-up for the Delhi National Capital Region, along with Delhi airport. Such airport systems are also set to come up in other parts of the country. Preliminary works are under way for Purandar airport near Pune in Maharashtra. In the south, the upcoming greenfield airport at Parandur in Chennai, Tamil Nadu, received in-principle approval in April 2025, and land acquisition is currently making headway. Meanwhile, site considerations are in progress for the second greenfield airport at Bengaluru in Karnataka.
Enhancing cargo handling capabilities
Airports in India have been making notable efforts to boost cargo handling capabilities. Notably, the share of international freight handling dominates at airport, accounting for around 60 per cent of the total freight in the past few years. In recent developments, the extended export cargo warehouse at Cochin airport was inaugurated in December 2025, and the Navi Mumbai International Airport witnessed the groundbreaking of FedEx’s fully automated air cargo hub in February 2026.
Sustainability takes centre stage
Sustainability, carbon emission reduction and net zero goals are key components of airport planning, design and operations. The integration of renewable energy is increasing. As per government data, more than 90 airports operate on 100 per cent green energy. Other initiatives adopted include low-carbon materials for construction, maximum use of daylight and LED lighting, energy-efficient heating and cooling systems, rainwater harvesting and wastewater recycling. Airports are also adopting biophilic terminal designs and elements to enhance passenger comfort and experience.
Smart airport operations
The use of advanced technologies and digital solutions continue to shape airport processes across the life cycle. Building information modelling is increasingly being used for airport designs, clash detection and error minimisation. The management of airport operations has also witnessed notable improvements with the use of advanced technologies like the revamped Airport Operations Control Centre at Mumbai airport and the Airport Predictive Operations Centre at Delhi airport.
Smart technologies are also playing a pivotal role in transforming passenger experience and convenience at airports. DigiYatra has made notable progress since its launch, reducing passenger waiting time through paperless processing and facial recognition technology. Other initiatives include self-check-in and baggage-drop kiosks, the Fast Track Immigration Trusted Traveller Programme and virtual terminal maps.
Growing MRO sector
With the expected rise in the aircraft fleet in the coming years, domestic players are tapping the opportunity to enhance domestic maintenance, repair and overhaul (MRO) capabilities. Favourable policies have also been a key driving force for the growth of the segment. Various new facilities are coming up, such as the new Safran LEAP Engine MRO facility at Hyderabad in Telangana, which was inaugurated in November 2025. On the airline front, IndiGo and Air India are constructing MRO facilities at the Kempegowda International Airport in Karnataka, while Akasa Air is set to establish its first MRO facility at the upcoming Noida International Airport in Uttar Pradesh. Players are also enhancing their domestic capabilities. Hindustan Aeronautics Limited has forayed into the MRO segment for commercial aircraft, and AI Engineering Services Limited has also ramped up its offerings and domestic MRO capabilities at various facilities. Looking ahead, the Indian MRO industry is targeted to reach $4 billion by 2031.
The next round of privatisation
The National Monetisation Pipeline 2.0, marking the second phase of the asset monetisation pipeline programme, reflects a positive outlook for aviation. The total monetisation value targeted for the award of civil aviation projects stands at Rs 275 billion. A total of twenty six existing airports have been identified to be developed under the operation, management and development agreement model. These airports have been divided into three bundles and are targeted to be bid out between 2025-26 and 2029-30, commencing with 11 airports. Additionally, the Airports Authority of India plans to partially dilute its equity stake in one of its subsidiaries and four joint venture airports.
Positively, the sector is set to see the next round of airport privatisation after six years, with 11 airports slated to be leased under the public-private partnership model. A distinguishing feature of this round involves the bundling of airports into five clusters, clubbing profitable and bigger airports with smaller loss-making ones.
Key challenges and concerns
While the aviation sector has seen growth trends and positive developments over the years, various challenges continue to pose hinderances in attaining its potential. Issues related to land acquisition have slowed down progress. On the operational front, adverse weather conditions have affected airline operations. Technical glitches, security concerns and hoax threats also impact airport operations. However, various measures have been undertaken to mitigate the negative impacts of these disruptions.
Moreover, geopolitical tensions in the past year have impacted the sector. Security concerns and airspace closure have resulted in flight cancellations and temporary halt of operations, as seen in the ongoing West Asia tensions. Moreover, high and fluctuating aviation turbine fuel (ATF) prices continue to affect airline financials, given that ATF accounts for around 40-50 per cent of an airline’s operational costs. Fuel price surges amid ongoing geopolitical situations have forced airlines to introduce fuel surcharges on passenger bookings to offset rising prices. The past year has also seen operational setbacks arising from both domestic aircraft and airline challenges. The sector is carefully navigating these issues, demonstrating resilience and steadily returning to the growth trajectory.
Future outlook
The Indian aviation sector is set to see notable infrastructure expansions in the near future, with the vision to reach 350-400 airports by 2047. Rising passenger demand, government support, enhanced regional connectivity and airline initiatives are paving the way for growth. While the recent past has seen periods of turbulence, the sector is building resilience amid such events. Looking ahead, and enhanced focus on passenger experience, technology integration and sustainable initiatives are expected to drive the sector forward.
