New Delhi, June 29 (IANS). There is a possibility of investment of up to Rs 4.2 lakh crore in India’s airport infrastructure sector by the year 2029. This has been said in a report by Brickwork Ratings released on Monday.
According to this report, this estimate includes projects worth about Rs 3.7 lakh crore that are being announced and implemented by FY 2026. Apart from this, additional investment of about Rs 50,000 crore is expected in new projects to be started by the year 2029.
The report said that the airport sector recorded strong growth in operating revenue in FY 2026 due to record passenger numbers and increase in airport fees (tariffs). At the same time, in the financial year 2027 also, the revenue is expected to continue to grow well due to the continuous increase in domestic air travel and expansion of the airport network.
According to the report, large-scale capacity expansion was carried out in the airport sector during FY 2026. The development of regional airports and modernization of terminals was accelerated to meet the ever-increasing demand for domestic air travel.
Neeraj Rathi, Senior Director (Ratings), Brickwork Ratings, said air passenger traffic is likely to grow by 8 to 10 per cent due to strong demand in domestic air travel, expansion of airport network in tier-II cities and opening of new greenfield airports like Navi Mumbai and Jewar. According to him, due to these reasons the impact of slowdown in international air travel will be balanced to a great extent.
The report said that the growth of international air travel has slowed down at present, mainly due to restrictions on flights, rising fuel prices and ongoing tensions in West Asia.
According to the report, only West Asia accounts for 38 to 40 percent of India’s total international air passenger numbers. In such a situation, the ongoing instability in this sector is directly impacting the Indian aviation industry.
Neeraj Rathi said that due to these challenges, growth may remain limited in the first half of FY 2027. However, the second half may see a sharp improvement in passenger numbers and demand as airlines start new flights for the winter travel season and new airports start operating at full capacity.
According to the report, the credit outlook of the airport infrastructure sector remains stable. Although there will be pressure on cash flow in the near future due to heavy investment on new terminals and expansion projects, the continuously increasing passenger numbers will sustain the growth of the industry.
The report states that the operating margin of airport operators is expected to increase to 53.8 percent in fiscal year 2026, whereas it was 44.4 percent last year. The main reason for this is the start of operation of new terminals.
This margin is expected to increase to 54.5 percent in FY 2027, because with the opening of expanded terminals, airport operators will get more income from retail stores, business services and airport fees.
The report said that the airport sector is getting major support from the government’s UDAN (Ude Desh Ka Aam Nagrik) scheme, under which a provision for capital investment of Rs 2.88 lakh crore has been made till the financial year 2036.
Apart from this, allowing 100 per cent foreign direct investment (FDI) in greenfield airport projects will also play an important role in giving new impetus to investment and development in this sector.
–IANS
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