Indian Economy News

India’s airports may turn into global transit hubs through new national policy

  • IBEF
  • November 9, 2023

India is developing a national policy to transform its airports into major international hubs, streamlining security, immigration, and infrastructure to compete with global hubs like Dubai and Singapore’s Changi Airport.

The government had established a commission to declare Delhi's airport an international hub, similar to those in Dubai and Doha. The committee, which directly addressed the Minister of Aviation, was in charge of losing important international airports and making recommendations for improvements to the airport. This committee has developed the policy as a component of the aviation ministry's strategy to expand India's international aviation industry and establish Delhi as a major international transit hub.

If the policy is enacted, it will address challenges such as double security checks and immigration bottlenecks to allow seamless connectivity between domestic and international flights. However, in order to ensure the success of the airport, coordination among ministries, airlines, and airports would be crucial.

India ranks third in terms of the largest civil aviation market. There is potential for Delhi airport to become a significant transit hub as it is strategically located in the corridor connecting North America and Europe to Southeast Asia, East Africa, and Northeast Asia. Additionally, considering this airport as a popular transit hub would benefit not only airlines but also passengers through direct flights and improved services. It would further enhance India’s position in the global aviation ecosystem.

During this year, Mr. Jyotiraditya Scindia, Union Minister for Civil Aviation inaugurated a new runway and a dual-way elevated taxiway at the Indira Gandhi International Airport, making it the first airport in India to have four runways. Mrs. Nirmala Sitharaman, Finance Minister of India stated in the Union Budget 2023-24 underlined increased investment in the country’s airports and growing India’s aviation sector. She further stated that an investment of Rs. 75,000 crore (US$ 8.99 billion), including Rs. 15,000 crore (US$ 1.80 billion) from private sources was to be taken up.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.