INDIA’S LEAD IN AIRPORT NON-COMMERCIAL REVENUE GROWTH
Sunil Tuli President of APTRASunil Tuli, President of the Asia Pacific Travel Retail Association (APTRA) & Group Chief Executive, King Power Group (Hong Kong) shares his perspective on the importance of travel retail within the Indian aviation industry.The Travel Retail and Duty Free market in India is the fastest growing in the global industry. The sector plays a critical role in the country’s aviation market, providing essential non-aeronautical revenue for airports and playing a pivotal role in the government’s ambitions for growth. The surge in the middle classes and in Gen Z constitute a powerful and appealing consumer target base for luxury brands, airlines and airports. The increasing demand for air travel from consumers keen to travel the world has also made India a priority source market for tourists in many countries who are keen to invest in-market to attract even greater numbers of Indian visitors.The number of operational airports across the federation has more than doubled from 74 in 2014 to 157 in 2024, and the government claims that this could increase to almost 400 by 2047.India’s Public-Private Partnership (PPP) model is further expanding the number of new airports and airport expansions, with over a dozen currently operating this model, and the Ministry of Civil Aviation is developing PPP modalities for the privatisation of 25 airports under the National Monetization Pipeline plan. The government’s long-term strategic planning programme is a comprehensive, joined-up approach that aims to develop transport infrastructure by recognising the interdependence of air, road, rail and water transport. Aviation is a key priority and is founded on the UDAN policy, rapidly expanding domestic air travel accessibility to the wider population. Building on the successful expansion of major airports, this policy has significantly increased connectivity to smaller Tier 2 and 3 cities and remote areas, making flying an everyday convenience accessible to a much larger proportion of the population. Traffic totalled 376.4m in FY2024 (domestic and international) Non-metro airports account for nearly 40% of total passenger traffic, with 146 million passengers in FY24. Outbound travel is projected to reach 52 million by 2029, with a CAGR of 11.5% The ambition to provide financially viable regional flight routes with capped airfares is inevitably complex in its influence on the market, but these routes aim to connect over 100 smaller airports in towns to India’s major cities. This also includes seaplanes and helicopter services. Similarly, the National Air Cargo Policy has aided the development and expansion of the country’s cargo operations, strengthening India’s position as a logistics powerhouse and, linking with the huge focus placed on the technology sector and education – especially in expanding the female workforce- is facilitating the rapid growth of e-commerce. One remarkable example of the success of the strategy is the fact that the comprehensive planning and new thinking behind India’s growth of its aviation system has resulted in 15% of India’s pilots being female, far above the global average of around 5%.Government initiatives like UDAN and regional airport privatisation are unlocking new markets, with non-metro airports now accounting for nearly 40% of total passenger traffic. Outbound travel is also surging, with international departures expected to reach 52 million by 2029, positioning India as the fastest-growing source market in South Asia. The expansion is unlocking new market access and bringing emerging traveller segments into the market and influencing retail trends from Dubai to Denpasar. While India’s growth is clearly impressive, it is rising from a relatively low base and, in everything from earnings per capita to annual passenger numbers and flights per capita, the country still has far to go to overtake China, for example – but it is a huge country with an increasingly affluent, young population that prioritises international travel and discovery. India’s airports – transforming capacity and the passenger experience Central to the country’s aviation focus is the positioning of India’s major airports as hubs connecting the East and the West. The international airport experience has been transformed in India, led by stunning locations such as Delhi Indira Gandhi International Airport (profiled in Airport World, Issue 2, 2025) where operator DIAL has developed what it describes as ‘a bigger, better, smarter, and future-ready’ airport by blending a capacity of 100 million per annum (with the potential to rise to 140 million) with quality in its ASQ award-winning passenger experience. The airport has a continuing programme of major developments planned for the next decade to strengthen its role as India’s ‘flagship hub’.Similarly, Bengaluru International Airport has created an even more expansive transformation, setting a global benchmark with new levels of customer service in the remarkable T2 – the ‘terminal in a garden’ – that shares a stunning celebration of the city’s culture, heritage and people. Major investment developments at Mumbai, Chennai, Bengaluru, Kolkata, and Hyderabad are also strengthening India’s ambition to be a competitive hub to the GCC. Leading the way for infrastructure essential to achieve India’s growth ambition is Navi Mumbai, the largest of seven major new population centre developments, supported by a new airport, Navi Mumbai International Airport, that will start operating commercial flights in the next few months following its official inauguration in June. With an initial capacity of 20 million passengers, it will expand to 50 million by mid-2029 following the addition of another terminal and runway. Subsequent planned phases will reach an eventual goal of 90 million pax by 2036. Jewar Airport, Noida, with six runways planned, is envisioned to become India’s largest airport and, though delayed, the first phase is scheduled to open soon and will help ease the pressures on capacity at Delhi Indira Gandhi International Airport.Airline growth In tandem with the country’s transport policy, India’s airlines leading the global industry in aircraft orders to utilise those airports, collectively placing orders for approximately 1,700 aircraft to be delivered by 2030. Last December, Air India augmented its existing mandate of 470 planes by an additional 100, reflecting its confidence in the long-term market. With new airports and new aircraft come new travellers – including an anticipated
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