Government to Invest $11 Billion in New Airport Construction and Expansion: Civil Aviation Minister.

By 2030, domestic air passenger traffic in India is projected to reach up to 300 million, prompting the government to invest approximately $11 billion in constructing new airports and expanding existing ones, announced Civil Aviation Minister K. Rammohan Naidu at the India and France Seminar on Monday. He highlighted that the number of operational airports in India has doubled over the past year, increasing from 74 to 157, underscoring the rapid scaling of aviation infrastructure in the country.

Naidu forecasted that the number of operational airports will reach 200 by the end of 2025 and that the government aims to establish an additional 200 airports over the next 20 to 25 years, bringing the total to between 300 and 400. He noted that domestic air travel in India has grown by 2.2 times in the last decade, with the fleet size of scheduled airlines doubling to around 800. Airlines have also placed orders for 1,200 new aircraft in the coming years, indicating robust growth in the sector.

The Minister emphasized that this growth benefits both India and France, as Air India and IndiGo have collectively ordered nearly 1,500 aircraft. “I can proudly say that India is the third-largest domestic aviation market in the world and one of the fastest-growing,” Naidu stated, adding that no other nation is acquiring aircraft at India's pace.

Additionally, Naidu outlined several policy initiatives from the Modi government aimed at bolstering the aviation industry. These include reducing the GST on aircraft components to 5% to enhance the Maintenance, Repair, and Overhaul (MRO) landscape, expanding regional connectivity, and implementing green initiatives to minimize carbon footprints in the sector.

French Ambassador to India, Thierry Mathou, announced plans to develop an aeronautics cluster in collaboration with the Civil Aviation Ministry to enhance cooperation in the aerospace sector. He highlighted the significance of the partnership between India and France, noting that French aerospace exports to India reached €2.7 billion in the first half of 2024.

A delegation from the French aerospace industry association GIFAS, consisting of over 100 representatives from 60 companies, is currently in New Delhi to engage with Indian companies and government organizations, including ISRO and DRDO, to strengthen cooperation in the defense and aerospace industries. An MoU was also signed between GIFAS and the Federation of Indian Chambers of Commerce & Industry (FICCI) to explore industrial opportunities in both countries.

Guillaume Faury, chairman of GIFAS and CEO of Airbus, addressed the seminar, confirming that discussions are underway for a complex project involving six Airborne Early Warning and Control (AEW&C) systems for the Indian Air Force. He also provided an update on the project, stating that it is expected to be cleared by the Defence Acquisition Council soon.

Major General Abhay Dayal, Additional Director General of Acquisition Technical (Army), reported that bilateral trade between India and France reached $13.4 billion in FY 2023, a notable 7.27% increase from the previous year. He emphasized that this growing economic synergy aligns with India’s vision of Aatmanirbhar Bharat.

Dayal further highlighted the special nature of defense cooperation between the two nations, stating that joint military exercises conducted by the Army, Navy, and Air Force have enhanced interoperability and demonstrated the strength of their collaboration in defense modernization.

HBL