Greenfield airports will witness a significant growth in Indian aviation infrastructure market through 2030 with the investment opportunity of Rs 2.3 trillion between FY2023-30.
As per consulting firm Praxis Global Alliance, with the growing demand for airports, India needs an average additional 34 airports by 2025, and about 125 airports by 2030 to meet the 350-400 million additional passengers demand forecasted by 2030.
"Indian airport infrastructure sector is expected to grow at a steady CAGR as Covid-19 clouds clear and demand increases," the consulting firm's report said.
"India's air travel demand had grown at an 11 per cent CAGR over FY16-20, primarily driven by growth in domestic air travel. However, Covid-19 impacted airport business resulting in an 85 per cent decline in international travel and more than 60 per cent decline in domestic travel in FY21."
According to the report, understanding the need for building airport infrastructure, the Centre has laid out over Rs 600 billion worth of investments in the next 2-3 years.
"The greenfield opportunity size for airports in India by 2030 translates to about Rs 2.3 trillion, resulting in a massive opportunity in the current decade,"
At present, the Centre has identified and given in-principle approval for 16 Greenfield projects with an investment worth Rs 500 billion.
Further, 34 destinations have been shortlisted for the development of new airports with a significant focus on Northern and Southern parts of the country.
"Given the demand for 125 airports by 2030 and the Government expediting the development of 50 airports, this results in an unmet demand of 75 airports and net new investments to the tune of Rs 1.1 trillion."
"Out of the estimated 75 new airports across all regions, North India is projected to witness the maximum number of new airports to cater to the unmet demand in the future."