Airports Authority of India plans ₹150 billion airport, ATC upgrade by 2028

The Airports Authority of India will invest ₹150 billion by 2028 to modernise airport infrastructure and air traffic control systems. The initiative aims to enhance safety, efficiency, and capacity while creating opportunities for domestic technology firms in aviation electronics and digital systems.

India’s aviation sector is set for a major technological transformation as the Airports Authority of India (AAI) rolls out an ambitious ₹150 billion infrastructure modernisation programme scheduled for completion by the end of 2028. The initiative reflects a strategic push to strengthen the backbone of the country’s aviation ecosystem, focusing on upgrading airport systems and next-generation air traffic control (ATC) technologies.

The investment marks one of the most significant commitments to aviation infrastructure in recent years and is expected to play a pivotal role in improving operational efficiency, safety standards, and capacity management across India’s expanding airport network.

A Large-Scale Infrastructure Push

India’s air travel market is among the fastest-growing globally, driven by rising passenger volumes, expanding regional connectivity, and increased cargo movement. As traffic intensifies, modernisation of infrastructure has become essential to avoid congestion, delays, and operational inefficiencies.

The AAI’s ₹150 billion programme aims to address these challenges by upgrading critical airport and ATC systems nationwide. The multi-year timeline provides scope for phased implementation, ensuring that technology integration and system upgrades are executed without disrupting ongoing airport operations.

Investment Details Specifications

Total Investment ₹150 billion

Completion Timeline By end of 2028

Primary Focus Airport systems, ATC technology

Implementing Authority Airports Authority of India

Focus on Air Traffic Control Modernisation

A key component of the programme is the modernisation of air traffic control infrastructure, which forms the nerve centre of aviation safety and operational coordination. With aircraft movements increasing across metro and regional airports, existing ATC systems face mounting pressure.

The planned upgrades are expected to include:

Advanced radar and surveillance systems

Enhanced communication networks

Modern navigation aids

Digital data processing platforms

Integrated automation for airspace management

Such improvements will help optimise aircraft sequencing, reduce delays, and enhance situational awareness for controllers. Modern ATC systems can also increase airspace capacity without compromising safety — a critical factor as India expands routes under regional connectivity initiatives.

Airport Systems to Go Digital

Beyond ATC, the programme includes a comprehensive overhaul of airport systems. This may cover digital passenger processing technologies, advanced security screening equipment, baggage handling automation, and integrated operations control centres.

The use of digital platforms and intelligent monitoring systems can streamline passenger flow, reduce turnaround times, and improve service reliability. Automation and data-driven decision-making are increasingly central to airport efficiency, and India’s push aligns with global trends in “smart airport” development.

Boost for Domestic Technology Companies

The modernisation effort is likely to generate significant opportunities for Indian technology and electronics manufacturers, especially firms with expertise in aerospace electronics, defence-grade systems, and digital infrastructure.

Companies such as Bharat Electronics Limited (BEL) and other domestic system integrators may benefit from procurement contracts for surveillance, communication, and control systems. The initiative supports India’s broader emphasis on self-reliance in strategic technologies, reducing dependence on imported aviation electronics.

Local industry participation could also accelerate skill development and innovation in specialised sectors such as avionics, embedded systems, and aerospace-grade software.

Strengthening Aviation Safety

Safety remains the central objective of the programme. Modern surveillance and communication technologies significantly reduce risks associated with congestion, weather disruptions, and human error. Enhanced data integration across airport systems can also support predictive maintenance and early fault detection.

Upgraded ATC and airport technologies will allow better monitoring of aircraft movement on runways and taxiways, improving coordination and reducing the risk of ground incidents. With aviation standards evolving globally, India’s investment ensures alignment with international safety benchmarks.

Supporting Growth in Air Traffic

India’s aviation market continues to expand as new airports are developed and passenger demand rises. Without corresponding upgrades in infrastructure, capacity bottlenecks could hinder growth.

The ₹150 billion plan aims to future-proof airport systems to accommodate higher traffic volumes over the coming decade. Enhanced capacity management tools and digital airspace coordination can help manage peak-hour congestion while maintaining service quality.

Economic and Strategic Significance

Infrastructure investment of this scale carries broader economic implications. Aviation plays a critical role in trade, tourism, and business connectivity. More efficient airports and ATC systems can boost overall economic productivity by reducing travel time and logistical bottlenecks.

Strategically, modern aviation infrastructure is also vital for national resilience. Reliable air traffic systems are crucial for emergency response, disaster relief, and defence coordination. Upgrading technology enhances operational reliability under varied conditions.

Alignment with Digital and Infrastructure Goals

The programme aligns with India’s national focus on digital transformation and infrastructure expansion. Integrating advanced electronics, automation, and data systems into aviation networks mirrors developments in other sectors such as railways and smart cities.

The investment also supports sustainability goals, as improved air traffic management can reduce fuel burn and emissions by enabling more efficient routing and reduced holding patterns.

Challenges and Execution

Implementing large-scale infrastructure upgrades involves complex coordination between technology providers, regulators, and airport operators. System integration, cybersecurity considerations, and workforce training will be critical to success.

Phased deployment and testing will help minimise operational disruptions while ensuring system reliability.

Outlook

As India positions itself as a global aviation hub, the ₹150 billion modernisation programme signals long-term commitment to building resilient, technology-driven airport infrastructure. By 2028, the initiative could significantly enhance the country’s aviation capabilities, safety performance, and operational efficiency.

For domestic technology companies, the plan represents a major growth opportunity in high-value electronics and aviation systems, reinforcing India’s role as a rising centre for aerospace technology development.