Greenfield airports in India to witness investments worth INR 2.3 trillion by 2030: Praxis
Greenfield airports are slated to witness significant growth in the Indian airport infrastructure market through 2030 with the investment opportunity of INR 2.3T(trillion) between FY2023- 30 and about 150,000 acres of land for development, according to a recent report by Praxis Global Alliance, a global management consulting and advisory services firm.
With the growing demand for airports, India needs an average additional 34 airports by 2025, and about 125 airports by 2030 to meet the 350-400M (million) additional passengers demand forecasted by 2030. The report on ‘Airport Infrastructure’ by Praxis suggests the Indian airport infrastructure sector is expected to grow at a steady CAGR as the Covid-19 clouds clear and demand increases. The report has evaluated the future growth potential of the sector with a focus on public-private partnerships (PPP). AAI owns and manages the majority of country’s airports; the top 5 airports together cater to about 55% of the pax capacity in India.
India’s air travel demand had grown at an 11 percent CAGR over FY16-20, primarily driven by growth in domestic air travel. However, Covid-19 impacted airport business resulting in an 85 % decline in international travel and more than 60 % decline in domestic travel in FY21. However, with recovery in business activities and the desire to travel, the domestic air traffic has been showing green shoots of recovery since the beginning of the second quarter of 2021 compared to the 2020 levels, cites the report. (Source: Indian Transport & Logistics News)