Indian Airports are ready for robust growth propelled further by rising passenger traffic post-pandemic, according to Fitch Ratings. The current air traffic propensity is comparatively low, given the size of the economy, but the graph is showing the upward trend, adds Fitch. Apart from this, the Government of India is giving special attention to the expansion and modernisation of existing airports as well as adding new airports in remote areas to enhance regional connectivity. The Indian Civil Aviation Ministry has ambitious plans of building over 200 airports in the next two years to cater to the rising passenger traffic and boost air travel.
Cost-conscious Indian domestic passengers on low-cost carriers fuelled traffic growth in the second half of the decade, 2015 to 2020. Domestic passengers also led the post-pandemic recovery, almost reaching the pre-pandemic level by May 2022.
Prior to the pandemic, India was the fastest-growing major aviation market with passenger traffic almost tripled in a decade from 2010 to 2020. International Air Traffic Association (IATA) predicts that 44% of additional air passenger trips over the next two decades will come from China and India alone
The regulatory framework in India has also been progressing and attracting a rising number of private operators.