India operates about 0.11 airports per million people

• According to the Economic Survey 2025-26, India has emerged as the world’s third-largest domestic aviation market.

• The number of airports increased from 74 in 2014 to 164 in 2025.

• Aviation services have continued to play a key role in sustaining passenger mobility and air cargo flows. 

• In FY25, overall air passenger traffic increased by 9.4 per cent, reaching 411.8 million passengers, driven by broad-based demand from both domestic and international travellers.

• It is projected to increase to 665 million by FY31. 

• However, a softening of momentum was observed during April-November 2025, when overall passenger traffic increased by 3.5 per cent (year-on-year comparison), reflecting flight disruptions and short-term demand adjustments in the domestic passenger segment. 

• Similar trends were observed in the air cargo segment.

• Air cargo volume grew from 2.53 million metric tonnes (MMT) in FY15 to 3.72 MMT in FY25, and 2.95 MMT handled in FY26 (until December), driven by several key policy initiatives and reforms.

• After recording a robust growth of 10.5 per cent in FY25, supported by steady trade flows, air cargo growth moderated to about 5 per cent during April-November 2025. 

• Industry assessments suggest that this moderation reflects a combination of factors, including higher operating costs, capacity constraints, geopolitical uncertainties affecting international routes, and a normalisation of demand after strong growth in the previous year. 

The need for continuous capacity upgradation

• India’s civil aviation sector is on a sustained growth trajectory, supported by a conducive policy environment, rising demand and steady infrastructure expansion. 

• While the sector remains sensitive to global economic cycles and the need for continuous capacity upgradation, the current passenger volumes represent only a fraction of India’s potential. 

• Further, India currently operates approximately 0.11 airports per million people, significantly lower than the US (47.35) and China (0.39), signalling substantial headroom for further growth. 

• Expansion in India’s airport and air navigation infrastructure and a growing ancillary ecosystem, including Maintenance, Repair, and Overhaul (MRO) and leasing, are strengthening the sector. 

• These developments, along with technology integration, positions civil aviation as a key driver of nationwide economic connectivity and integration.