Government Seeking to Double Airports Quantity by 2030

India's aviation sector will require more than $170 billion by 2030 to support record aircraft orders and expand airport capacity in response to a booming surge in air traffic, according to a report by S&P Global Ratings. As one of the world's fastest-growing aviation markets, domestic passenger traffic in India is expected to double to 300 million by 2030, based on government projections. In addition, international flights could see traffic more than double, according to estimates from CAPA India, an aviation research group. Indian airlines have placed record aircraft orders with Airbus and Boeing, and the government aims to double the number of airports by 2030.

With the ambition of creating global aviation hubs comparable to Singapore, Dubai, and Doha, S&P Global Ratings predicts Indian carriers will need to invest $150 billion to finance orders for 1,700 aircraft and a further $24 billion to build new airports and upgrade existing infrastructure.

S&P Global analysts noted that the current environment is favorable for borrowing, citing the rise in passenger traffic, relatively lower domestic financing rates, and supportive government policies on foreign ownership, all of which should enhance funding opportunities for the sector.