India’s civil aviation sector has undergone significant expansion and transformation, with developments spanning airport infrastructure; regional connectivity; airline fleet expansion; cargo, maintenance, repair and overhaul (MRO); sustainability; and investment. A look at the key developments in the civil aviation sector over the past year…
Policy and regional connectivity
- The Ministry of Civil Aviation was allocated Rs 21.03 billion under Union Budget 2026-27, including Rs 5.5 billion earmarked for the Regional Connectivity Scheme.
- The government launched the Modified Ude Desh ka Aam Nagrik scheme in July 2026 with an outlay of Rs 288.4 billion over 10 years.
- Several states have introduced ambitious aviation policies. Andhra Pradesh’s Aviation Policy 2026-31, approved by the state cabinet in June 2026, targets additional airports, heliports, waterdromes, cargo infrastructure and private investment. Odisha unveiled its draft Civil Aviation Policy in July 2026, aiming to double operational airports to 10 by 2028-29, increase passenger traffic to 10 million passengers per annum and develop MRO facilities. Further, the Assam cabinet approved its MRO Policy in 2025.
Airports and terminal expansion
Several large airport projects and new terminals were inaugurated and operationalised.
- Navi Mumbai International Airport was inaugurated in October 2025 and began commercial operations in December 2025. Noida International Airport commenced commercial operations in June 2026 and Alluri Sitarama Raju International Airport in Andhra Pradesh began commercial operations in August 2026.
- Existing airports underwent major upgrades. The refurbished Terminal 2 at Delhi’s Indira Gandhi International Airport was inaugurated in October 2025. Further, the new terminal at Halwara airport, Ludhiana, was inaugurated in February 2026, with commercial operations beginning in May 2026. New terminal buildings were also inaugurated at Donyi Polo airport in September 2025, Guwahati Airport in February 2026, Namo airport in Daman in June 2026, Jodhpur airport in July 2026 and an interim terminal at Purnea airport in September 2025.
- Several airports are simultaneously being expanded to meet future demand. The union cabinet approved the modernisation and expansion of Nagpur airport under a public-private partnership model in May 2026, and GMR Airports Limited assumed operational control of the airport in June 2026. Works are also under way for new terminals at Vijayawada airport, Darbhanga airport and Nashik (Ozar) airport. Moreover, capacity expansion is progressing at airports in Kota, Pantnagar, Patna, Lucknow and Warangal, among others.
Cargo and MRO
- Air cargo infrastructure is emerging as an important area of airport investment. Hyderabad International Airport commissioned Cargo Terminal 2 in May 2026, adding an initial annual capacity of around 50,000 tonnes. Cochin airport expanded its export cargo warehouse, increasing its annual capacity to 125,000 tonnes.
- FedEx broke ground on a large automated air cargo facility at Navi Mumbai airport in February 2026. At Delhi airport, GMR Cargo and Logistics secured Rs 7.5 billion in financing for the development of Delhi Airport Cargo City.
- IndiGo began construction of a major MRO facility at Bengaluru airport in August 2025, while Safran inaugurated a large LEAP engine MRO facility in Hyderabad in November 2025. Additional MRO initiatives have been announced at Bhubaneswar airport, Kannur International Airport, Guwahati airport and Noida International Airport.
Fleet expansion
- Indian carriers added significant capacity during the year. Akasa Air expanded rapidly, reaching 40 aircraft by July 2026. Regional carrier Fly91 also expanded its ATR 72-600 fleet.
- Air India returned its final long-grounded Boeing 777-300ER to service in March 2026, completing the revival of 30 previously grounded aircraft.
- IndiGo converted purchase rights into firm orders for additional Airbus A350-900 aircraft, taking its total wide-body order to 60 aircraft. The airline also received its first A321XLR aircraft.
Investment and private partnership
- In April 2026, GMR entered into an agreement with Groupe ADP for the acquisition of 7.3 per cent stake in GMR Airports.
- On the airline front, Air India’s leasing arm secured a $215 million term loan to finance six Boeing 777-300ER aircraft. Further, IndiGo approved a capital investment of up to $820 million in InterGlobe Aviation Financial Services IFSC Private Limited (IndiGo IFSC) for aviation asset acquisitions.
- Adani Defence increased its Air Works stake to 99.98 per cent.
- Blunav raised $1 million to expand its airport operations platform and deployment across airports.
Sustainability and technology
- Technology and modernisation remained important priorities. The government amended regulations to bring sustainable aviation fuel-blended aviation turbine fuel (ATF) within the ATF regulatory framework.
- The Airports Authority of India has earmarked about Rs 34.9 billion for 2026-28 to modernise communication, navigation, surveillance and air traffic management systems.
