India Plans Rs. 92,000 Crore Investment in Airport Infrastructure

India's aviation sector is set for significant growth, with the government planning to invest over Rs 92,000 crore in constructing new airports and expanding existing ones. The Civil Aviation Ministry aims to have 200 operational airports by 2025, with an additional 200 planned over the next two decades. This initiative is designed to address the growing demand for air travel driven by the country's large population and increasing economic activity.

Speaking at an event organized by the French Aerospace Industries Association (GIFAS), Civil Aviation Minister Ram Mohan Naidu outlined the scope of the airport expansion. The plan includes building new airports in underserved regions and upgrading infrastructure in major metropolitan areas to handle the rising passenger traffic.

India’s airlines are also increasing capacity, adding approximately 9% more seats in 2024, bringing the total to 240 million across both domestic and international routes. Naidu emphasized that with a population of 1.4 billion and a growing middle class, air travel demand is expected to rise rapidly in the coming years.

To accommodate this growth, airlines such as IndiGo, Air India, and Akasa have placed substantial aircraft orders with manufacturers Airbus and Boeing. By March 2025, the total order book for new planes is projected to reach around 2,000.

Despite the expansion, the sector is facing operational challenges, particularly related to engine issues. Over 70 IndiGo aircraft have been grounded due to faults in engines supplied by Pratt & Whitney (PW). Another Indian airline, Go First, filed for bankruptcy in 2023, citing engine-related problems with its Airbus A320 neo fleet, also powered by PW engines.

Naidu acknowledged these difficulties, noting that the government is working closely with the engine supplier to expedite maintenance and repairs. He highlighted the importance of addressing these issues to bring grounded planes back into service and reduce airfare costs in an increasingly competitive market.

This expansion is part of a broader effort to enhance India's air connectivity and infrastructure to meet the demands of its rapidly growing economy.