India’s civil aviation sector is gaining significant momentum, driven by both government initiatives and private sector investments. With rising disposable incomes, the demand for air travel has also increased, promoting the expansion of existing airports and the creation of new ones.
Indian Infrastructure takes a look at some of the key developments in the civil aviation sector over the past year…
Policy and regulatory developments
- The Ministry of Civil Aviation received an allocation of Rs 24 billion under the Union Budget 2025–26, including Rs 5.4 billion for the regional connectivity scheme.
- The Bharatiya Vayuyan Adhiniyam, 2024, came into effect on January 1, 2025. Further, the Protection of Interests in Aircraft Objects Bill, 2025, was passed in April 2025.
Airport expansions
Key projects inaugurated and completed
- The country has witnessed the inauguration of various airports and new terminals over the past year. In October 2024, three airports developed under the UDAN scheme, in Rewa, Ambikapur and Saharanpur, were inaugurated. In April 2025, the newly developed Amravati airport was inaugurated.
- This was followed by the inauguration of the new Satna airport and the upgraded Datia airport in May 2025. Further, the Solapur airport, which was inaugurated in September 2024, commenced commercial operations in June 2025.
- New terminal buildings were inaugurated at airports in Jaipur, Patna and Tuticorin. In April 2025, the upgraded Terminal 1 at Delhi airport also became fully operational.
Ongoing developments and plans
- Key greenfield airports are currently witnessing rapid construction. The upcoming mega airports at Navi Mumbai and Noida witnessed flight trials in 2024 and are expected to commence operations by the end of 2025. Work is also under way at the Bhogapuram airport and the Dholera airport.
- Plans are under way for new greenfield airports in various states. In-principle approval was granted for Chennai’s second airport at Parandur in April 2025 and for the Puri airport in May 2025. Further, the Kota-Bundi airport received approval from the Cabinet Committee on Economic Affairs in August 2025. Various locations have been selected for airports at Hosur, a second airport in Bengaluru and Rameswaram. An airport is also expected at Dhalbhumgarh.
- The foundation stone for the Bihta airport in Bihar was laid in May 2025. Meanwhile, the development of Purnia airport is currently under way. In July 2025, an MoU was signed for developing six small airports in Madhubani, Saharsa, Birpur, Valmiki Nagar, Munger and Muzaffarpur.
- Meanwhile, foundation stones were laid for expansion works in Nagpur, Shirdi, Varanasi, Kheria, Bagdogra, Darbhanga and Hisar.
- Airports in Jaipur, Delhi, Chennai, Prayagraj, Coimbatore, Varanasi, Agra, Cochin, Bengaluru, Bagdogra and Darbhanga are undergoing developments, ranging from capacity expansions to the construction of new terminals.
- Other active works are under way at airports in Udaipur, Jodhpur, Hubballi, Belgaum, Kadapa, Goa (Dabolim), Jammu, Vijayawada, Shirdi and Thiruvananthapuram.
Cargo and MRO
- The country is witnessing an expansion of cargo facilities across airports. In February 2025, a new domestic cargo terminal was built at Bengaluru airport, which also witnessed the inauguration of a logistics park in April 2025. In addition, cargo operations commenced at various existing airports.
- The MRO segment has also been making headway. Key developments include Air India commencing construction of a new MRO facility in Bengaluru in September 2024, and the inauguration of a new MRO facility in Gurugram by Thales in March 2025.
Airlines and fleet expansion
- India’s airline pool has seen major developments over the past year. Two major events were the merger of Air India Express and AIX Connect in October 2024, and the merger of Air India and Vistara in November 2024. Shankh Air, a new entrant, received approval in September 2024. However, Go First and Jet Airways received orders for liquidation in January 2025 and November 2024 respectively.
- IndiGo expanded its fleet with the signing of damp-lease agreements for six aircraft with Norse Atlantic Airways. It also signed an MoU with Airbus in June 2025 to convert the option for 30 A350-900 aircraft into a firm order.
Investments and financial moves
- Notable asset-level investments have been made in the sector. GQG Partners raised its stake in GMR Airports Infrastructure to 5.17 per cent, while GMR Airports Infrastructure Limited increased its share in Delhi International Airport Limited to 74 per cent, among other key stake acquisitions.
- Apart from this, private players such as Adani and GMR have taken initiatives to mobilise funds. While GMR raised non-convertible bonds amounting to Rs 11 billion in February 2025, Adani secured $1 billion in financing for the Mumbai International Airport Limited and also raised $750 million via external commercial borrowings in June 2025.
