India aviation demand outpaces supply growth

India’s civil aviation demand is currently outpacing the growth of available airline capacity. Union Civil Aviation Minister Kinjarapu Ram Mohan Naidu reported that over the last decade, revenue passenger kilometres grew at a compound annual growth rate (CAGR) of 7.3%, while available seat kilometres grew by 7.0%.

To address this gap and support India’s goal of becoming the world’s third-largest aviation market, the government is pursuing an extensive airport expansion programme. The number of operational airports in India has risen from 74 in 2014 to over 166 today, with a target to reach 400 airports by 2047. Currently, 66 airports are under development, and another 100 are planned over the next decade.

The Minister also highlighted the success of the UDAN scheme in boosting regional connectivity, noting that the International Air Transport Association (IATA) has recognized it as a unique model for stimulating air access. Additionally, India will host the Routes Asia 2027 aviation conference in New Delhi from March 16 to 18, 2027.