India’s airport infrastructure sector is expected to witness investments of nearly Rs 4.2 lakh crore by 2029, driven by rising air travel demand, capacity expansion and the development of new greenfield airports, according to a report by Brickwork Ratings.
The report estimates that airport projects currently announced or under execution account for investments worth around Rs 3.7 lakh crore, while an additional Rs 50,000 crore worth of projects are likely to be commissioned over the next few years. More than 65 airport projects have been announced up to FY26, with the sector expected to add capacity to handle 500–600 million passengers.
The Mumbai Metropolitan Region is expected to play a pivotal role in this expansion. The upcoming Navi Mumbai International Airport is set to reduce congestion at the existing Chhatrapati Shivaji Maharaj International Airport while emerging as one of India’s largest aviation hubs. Alongside the Jewar International Airport near Delhi, it is expected to support the next phase of the country’s aviation growth.
Brickwork Ratings projects domestic passenger traffic to grow by 8–10%, supported by rising disposable incomes, improved regional connectivity under the UDAN scheme and increasing demand for air travel from Tier-II and Tier-III cities. However, international passenger traffic is likely to remain subdued in the near term due to geopolitical tensions in West Asia, airspace restrictions and elevated aviation turbine fuel (ATF) prices.
According to Niraj Rathi, Senior Director-Ratings at Brickwork Ratings, airport traffic growth may remain moderate during the first half of FY27 before picking up in the latter half as airlines expand winter schedules and newly commissioned airports become operational.
The report also forecasts operating margins to improve from 44.4% in FY25 to 53.8% in FY26 and further to 54.5% in FY27, driven by higher non-aeronautical revenues from retail, hospitality, commercial leasing and food outlets.
While the sector continues to face challenges such as high capital expenditure, fuel price volatility and regulatory delays, the report highlights that modern airport infrastructure—particularly Navi Mumbai International Airport—will be instrumental in strengthening India’s long-term aviation and economic growth trajectory.
Source: The Times of India
