India is the second largest Aviation market in the World.

Civil Aviation forms a very important infrastructure in boosting trade and commerce as well as in enhancing overall international competitiveness. In value terms nearly 30% of India's foreign trade is handled by the airports.

India a very attractive market for airport and avionics equipment manufacturers , airport developers, service providers, airline companies, aviation  schools, investors, consultants and job seekers. The Government of India policy to liberalize the civil aviation market also presents foreign firms with significant export and investment opportunities.

There are totally 125 civil airports in india including the 11 designated international airports.Of these only 94 airports only are presently operational.

The projections for both passenger & cargo traffic growth, coupled with the deficient & lagging airport & allied Infrastructure, calls for an urgent need to build & augment India’s
Aviation Infrastructure. There is an urgent need for India to have world-class gateway Airports providing aviation services and passenger/cargo facilities of global standards, in a safe and secure environment.

Air Traffic Forecasts (2007-2012)
As per the recent Economic survey report,there had been record growth of over 25% in the air traffic in India in the last three years. From being a near monopoly service with few operators a decade ago , the sector has now graduated to being a fiercely competitive industry with the presence of a number of private and public airlines catering to the different segments of air travelers such as low cost ,business class, charter  aircrafts.From 5 million air passengers in 1970, it is projected to grow to a level of 145 million passengers in the year 2010.
Air traffic forecast:

Modernization of existing airports in Delhi & Mumbai
The existing International airports in Delhi and Mumbai are being restructured and modernized through Private sector participation. In the Joint Ventures, AAI and other Government PSUs hold 26% equity, with the balance 74% being held by the strategic partner. As per the current policy of the government, the FDI in existing airports has a sectoral cap of 49%. The development plans for Delhi and Mumbai airports envisage an investment of Rs. 5,270 crore and Rs. 6,130 crore respectively (totaling Rs.11,400 crore) during the period of 2006-07 to 2013-14 for development of these two airports. The respective state governments have formulated State Government Support Agreement to provide support to the projects in matters relating to removal of encroachments or procurement of additional land for development of airport, removal of obstruction outside the airport boundary to ensure safe and efficient air traffic movement, and to improve
the surface access to the airport and to provide utilities like water, power, etc.

Funding of Delhi and Mumbai airports

Source Funding
1. Equity contribution by AAI – INR 302 Crores
2. Private Equity  - INR 1,200 Crores
3. Internal Resources of JV Co – INR 2,298 Crores
4. Borrowings of JV Co – INR 7,600 Crores
Total  INR 11,400 crores
Source: Planning Commission

 Modernization of Non-Metro Airports

The Prime Minister’s committee on infrastructure has given its in-principle
approval for modernization of 37 non-metro airports (including Sikkim and
Arunachal Pradesh airports). The Ministry of Civil Aviation has set the target of 2008-09 for the completion of these projects. The project model would be such that all aeronautical activities at these airports would be handled by the AAI, while a public-private partnership (PPP) model would be followed for the development of non-aeronautical activities at the city side of these airports. The PPP model is likely to peg the foreign direct investment (FDI) levels at 49 per cent with the private sector partner being allowed to pick up 74 per cent equity in the project. AAI has decided not to seek any budgetary support for the modernization process that is expected to cost between Rs 7,000 and 8,000 crore. The funds required would be garnered from internal resource mobilization by the AAI.

Planned capex on thirty five non-Metro airports

Terminal Building, Carpark, Cargo – INR 3267Crores
Air Side – 1396 Crores ,City side – INR 1500 Crores
Total      - INR 6162 Crores