India's Airports Ready for a Rs 1 Lakh Crore Takeoff

India's airport sector is poised for significant growth, with over Rs 1 lakh crore expected in investments for expansion of both greenfield and brownfield airports. A report from ICRA forecasts a promising rise in passenger traffic and revenue, ensuring strong financial health for the industry.

India's airport industry is on the brink of a historic transformation as it prepares for infrastructural investments exceeding Rs 1 lakh crore, according to a recent report by the rating agency ICRA. The strategic investment aims to alleviate capacity constraints faced by several airports across the nation, providing substantial opportunities for both greenfield and brownfield developments.

The report highlights that new airports are set to emerge in Jewar (Noida), Navi Mumbai, Bhogapuram, and Parandur (Chennai), in addition to significant expansions planned for existing airports like Bangalore, Hyderabad, Cochin, Mumbai, and Nagpur. Various airports under the stewardship of the Airports Authority of India (AAI) are also scheduled for much-needed upgrades, emphasizing a sector-wide initiative to enhance infrastructure.

Amidst these developments, the report projects a promising increase in airport passenger traffic, with an expected climb to 440-450 million by FY2026. The financial outlook remains equally optimistic, with airport revenues anticipated to surge by 18-20% year-on-year in FY2026. Despite the aggressive investment strategies, ICRA assures stakeholders of maintained financial robustness, with debt coverage ratios projected to remain comfortably high.

(With inputs from agencies.)