The group chairman of Sky One says that a balanced focus on passenger and cargo aviation is essential to achieving this objective
The Union Budget presented in February, took significant steps toward upgrading air cargo infrastructure. There was a special focus on air cargo warehousing, particularly for perishables, along with streamlining cargo screening and customs protocols to enhance efficiency and promote ease of doing business in the sector. Strengthening the cargo sector is not only crucial for boosting trade but also for advancing India’s goal of becoming a global aviation hub.
“The characteristics of a global aviation hub are defined by a balanced focus on passenger and cargo aviation, infrastructure development, favourable regulatory and policy decisions, and the integration of sustainability,” says Jaideep Mirchandani, Group Chairman of Sky One.
According to official data, in 2024, domestic airlines operated 1.02 million scheduled flights, carrying 146.4 million passengers, while 64.5 million passengers travelled on international routes via scheduled Indian and foreign operators.
“Domestic air passenger traffic has more than doubled over the past decade, driven by Indian airlines expanding their fleets significantly. Similarly, there is a growing demand for long-haul and ultra-long-haul routes from major Indian airports. India’s air cargo sector is also expanding at a healthy rate. Therefore, the development of greenfield airports and the expansion of cargo and passenger handling capacity at existing airports are crucial to sustaining India’s civil aviation growth,” adds Mr. Mirchandani.
Meanwhile, the Union Government has approved the development of 21 greenfield airports across the country, of which 12, including Durgapur, Shirdi, Sindhudurg, Pakyong, Kalaburagi, Orvakal, Kushinagar, Itanagar, Mopa, Shivamogga, and Rajkot, have already been operationalised.
“Two major international airports, Noida (Jewar) and Navi Mumbai, are also expected to open soon. There are also major capacity expansion projects planned at existing domestic terminals under the Regional Connectivity Scheme (UDAN). Developing adequate infrastructure will help the country keep pace with rising passenger volumes and prevent overcrowding and congestion at major airports,” says Mr Mirchandani.
Meanwhile, a report by CRISIL Ratings states that Indian airports will incur a cumulative capital expenditure of over Rs 60,000 crore in the three years through fiscal 2027, a 12 per cent increase from Rs 53,000 crore spent during fiscal 2022-2024. To support this growth, airport operators are investing in aviation-related infrastructure such as terminal buildings and runways to accommodate rising passenger traffic. It says that airports are also expanding non-aeronautical facilities like lounges, parking, food courts, and retail spaces, boosting revenue streams.
