Indian Air Travel To Rise 7Pc Per Year

Dhaka: Passenger traffic at Indian airports is projected to grow at a compound annual growth rate (CAGR) of 7pc between FY2025 and FY2027, according to a report by CareEdge Ratings.

This marks a slight moderation from earlier pre-COVID estimates of 9pc.

The growth is underpinned by favorable demographics, increasing non-aeronautical revenues, and continued investments in airport infrastructure.

India, the world's third-largest aviation market after the US and China, continues to maintain a strong share of global air traffic.

CareEdge noted that while long-term prospects remain robust, short-term growth may be tempered by delayed deliveries of wide-body aircraft, global safety concerns, and ongoing geopolitical disruptions.

Nevertheless, the overall outlook for Indian airports remains positive.

Structural demand, driven by a young population, a growing middle class, and rising travel propensity, continues to attract private investment.

A supportive regulatory environment is also encouraging long-term infrastructure development.

Non-aero revenue streams-such as retail, F&B, parking, and other commercial services-are boosting profitability and reducing dependence on traditional aeronautical charges.

City-side development around airports, including real estate, logistics, and hospitality, is also emerging as a significant growth avenue, transforming airports into integrated urban hubs.

Rajashree Murkute, Senior Director at CareEdge Ratings, said the Indian aviation sector is undergoing a transformative phase, with strategic investments in airport capacity, infrastructure, and private participation driving the next wave of growth.

She added that infrastructure investments across sectors-roads, ports, airports, and logistics-alongside renewable energy expansion, will act as multipliers for GDP, supporting long-term resilience and sustainability.

Established in 1993, CARE Ratings Ltd (CareEdge Ratings) provides services in credit ratings, analytics, consulting, and sustainability.

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