India’s aviation sector has undergone a historic transformation and is now the world’s third-largest domestic aviation market, said India’s Prime Minister Narendra Modi at the Wings of India 2026 programme via video link. Modi continued that passenger traffic has surged, and Indian airlines are now awaiting deliveries for more than 1,500 aircraft ordered in recent years.
Economic reports note that India operates about 0.11 airports per million people. This is far below the 47.35 airports per million people in the US. Despite this, only the US and China are ahead of the country in domestic aviation market size.
Government projections predict annual passenger traffic to rise to 665 million by the 2031 fiscal year. This is over a 60% increase from 2025 passenger numbers.
To keep up with such growth, India has more than doubled its airports in 12 years and approval for 24 greenfield airports is underway, with 13 already in operation. By 2047, India is projected to have more than 400 airports.
Looking ahead, Modi said he expects India’s air connectivity to improve in line with the country becoming a developed nation. The government is working on the next phase of the UDAN scheme to further strengthen regional connectivity. Modi launched the UDAN scheme in 2016 to make regional air travel more affordable in the country.
Ciruim data projects strong growth for airlines such as IndiGo across this year, further boosting the economy. Last week, the carrier operated its first Airbus A321XLR route to Athens, paving the way for more affordable long-haul travel too.
Ground service providers in the region are also scaling up to meet rising demand. Leading gateway services provider Air India Sats (AISATS) operates a GSE fleet of over 4,000, serving nearly 90,000 flights. Its training academy is building skills for India’s next generation of ground handling and airport operations professionals.
Modi further highlighted opportunities for air cargo in the region, and encouraged investors to partner with the country.
