India Spends ₹96,000 Crore on Airport Expansion in Five Years

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India has invested more than ₹96,000 crore in the development and modernization of its airports over the last five years, according to a statement by Minister of State for Civil Aviation, Murlidhar Mohol. The substantial capital expenditure, incurred from fiscal year 2019-20 to 2024-25, was a mix of funding from the Airports Authority of India (AAI) and private airport developers. This investment reflects India’s concerted effort to keep pace with the nation’s soaring air traffic and its growing status as the world’s third-largest aviation market.

The AAI’s share of this capital expenditure was more than ₹25,000 crore, with the rest contributed by public-private partnerships (PPPs). The funds have been strategically deployed to a wide range of projects aimed at enhancing the country’s aviation infrastructure. These include the construction of new airports, expansion and modification of existing terminals, and the addition of modern passenger facilities. A significant portion of the investment has also been directed toward expanding and strengthening runways and aprons and upgrading Air Navigation Services (ANS) infrastructure, such as control towers and technical blocks.

Mohol’s statement, made in a written reply to a question in the Lok Sabha, underscored the government’s commitment to improving regional connectivity. The AAI’s capital expenditure is funded mainly from its own resources but also includes a budgetary grant of ₹4,500 crore under the Regional Connectivity Scheme, Ude Desh ka Aam Naagrik (RCS-UDAN) Phase I. An additional ₹1,000 crore has been allocated for Phase II of the scheme to revive more underserved and unserved airports, heliports, and water aerodromes. This initiative has been instrumental in making air travel accessible to a larger segment of the population.

Major airport projects have been undertaken across the country, from Delhi, Bengaluru, and Hyderabad to smaller cities like Rajkot, Prayagraj, and Shivamogga. This widespread development is part of a national strategy to not only boost connectivity but also to decentralize air travel and support economic growth in various regions. The investments are a clear sign of the government’s focus on building world-class infrastructure to support India’s long-term economic and strategic objectives.