Aviation Infrastructure Market in India

The Indian aviation infrastructure market is poised for growth, owing to urbanization, better connectivity in the country, and government-backed policies. The country’s major airports are expanding their capabilities, upgrading facilities, and improving operational efficiency to accommodate more passengers and enhance overall travel experiences.

Government schemes and policies such as the Regional Connectivity Scheme - Ude Desh ka Aam Nagrik (RCS-UDAN) have provided support to unserved and underserved airports through the revival of existing airstrips and airports.

The Indian government is also focusing on sustainability, which is understandable from the achievement of Delhi and Mumbai airports that received the prestigious Level 4+ Carbon Accreditation.

Market trends:

Green and sustainable practices to reduce carbon footprint help to enhance operational efficiency. Indian airports have witnessed the adoption of green infrastructure elements such as solar power generation, rainwater harvesting techniques, waste management, and energy-efficient buildings.

Under the Regional Connectivity Scheme (RCS)-UDAN, two water aerodromes have been established in Gujarat and are now operational, significantly improving connectivity in remote regions.

Market drivers:

An increasing number of working groups and middle-class families are anticipated to drive up demand for aviation, as they are likely to travel more frequently. This surge in travel necessitates continuous upgrades to airports. The growth is further supported by rising air traffic and investments in commercial aircraft by airlines
Government policies and initiatives, such as the UDAN scheme (Ude Desh Ka Aam Nagrik), have contributed to the growth of the aviation industry, especially in underserved areas. The primary goal of the scheme is to connect underserved and unserved airports across India, thereby promoting air travel in remote regions where other forms of transportation may be limited. UDAN seeks to stimulate economic growth in regional areas, enhance tourism, and create job opportunities.

Key deterrents to the growth of the market:

Indian airlines face inadequate and overstretched infrastructure in India, thus leading to flight delays, cancellations, and other complexities. This dampens passenger satisfaction and the reliability of airlines.

Many smaller towns and rural parts of India remain underserved or inaccessible by air. This lack of regional connectivity leads to poor economic development and tourism. Social integration is also negatively impacted by the same. Measures like UDAN (Ude Desh ka Aam Nagrik) scheme aims to improve air connectivity to underserved areas by subsidizing flight fares and aiding regional airports’ development measures. But these sustained efforts need to bypass infrastructure bottlenecks and operational hindrances.