Soaring Investment: Indian Airports to Scale New Heights

Indian airports are set to see a 12% increase in capital expenditure, reaching Rs 60,000 crore by FY27, to accommodate 65 million passengers annually. This growth is fueled by rising domestic and international travel, increased tariffs, and enhanced revenue streams, while 70% of the funding will come from debt.

The cumulative capital expenditure on Indian airports is projected to grow by 12% to Rs 60,000 crore by FY27, as reported by CRISIL. This investment aims to develop infrastructure for 65 million passengers annually.

CRISIL forecasts that 70% of this expenditure will be financed through debt, based on its analysis of 11 private airports responsible for 60% of India's air traffic in FY24. Revenue is expected to grow at 17% annually from FY25 to FY27, bolstered by increased passenger traffic and aeronautical tariffs.

CRISIL Ratings Director Ankit Hakhu highlighted the impact of domestic and international travel growth, supported by new aviation infrastructure and regulatory frameworks, which will strengthen the financial profiles of these airports, despite the debt financing.

(With inputs from agencies.)