As part of India’s civil aviation push, the initiative aims to unlock 15% economic growth through large-scale real estate projects near upcoming airports.
India’s civil aviation sector may soon witness a dramatic transformation in its urban landscape, with large-scale real estate developments planned around upcoming airports to mirror global hubs like New York, London, and Hong Kong.
Kinjarapu Ram Mohan Naidu, Union Minister for Civil Aviation, has said the government is conducting a study to draw lessons from developments around leading international airports to enable multiple economic activities around new aviation infrastructure.
“A study is being undertaken to draw development cues from leading airports of the world, such as those in New York, London, and Hong Kong, so that multiple large-scale economic activities can be ensured around upcoming airports in the country,” Naidu said while addressing the second day of the National Real Estate Development Council (NAREDCO)’s 17th national convention in New Delhi on Saturday.
He added that the initiative aims to boost sectoral growth through real estate projects in proximity to new airports, targeting a 15 per cent increase in economic activity.
Speaking earlier at the Eastern Region Ministers’ Conference on Civil Aviation on August 25 2025, Naidu reaffirmed the government’s long-term vision under Viksit Bharat, which includes building 350 airports by 2047. So far, 88 airports have been operationalised, with several more in the pipeline.
“Airports generate huge footfalls not only for recreation but also for diverse economic activities in and around their vicinity. Hence, the government intends to encourage the creation of convention centres and hotels close to such airports for multiple economic gains,” Naidu said.
He cited examples from New York, London, and Hong Kong, where airports operate at high economies of scale and are surrounded by thriving real estate and commercial ecosystems. India, he said, could emulate these models to develop similar utilities around its greenfield airports.
Destination Amravati
Naidu also used the platform to invite NAREDCO members to participate in the development of Amravati, Andhra Pradesh’s new state capital.
“Since I come from the State of Andhra Pradesh, I would like the Members of NAREDCO to proactively come forward to build the new capital, Amravati, which will be a huge smart city with world-class facilities and infrastructure of the highest standards.”
Conceptualised in 2014, Amravati is the flagship project of Andhra Pradesh Chief Minister and Telugu Desam Party President N Chandrababu Naidu. After a period of political dormancy, the project has regained momentum with the central government allocating ₹150 billion for its development.
India’s newest state capital is expected to be completed by 2028, with plans to integrate smart city features, sustainable infrastructure, and global urban benchmarks.
On the occasion, Naidu also released a report titled ‘Beyond the Runway: Scope of Non-Aero Revenue and Aerocities in India’, authored by Knight Frank India. The report highlights the growing importance of non-aero revenues in shaping the future of Indian airports and urban growth.
It notes that airports managed under the public-private partnership model generate 87 per cent of the country’s total non-aero revenue, while handling 64 per cent of total traffic. India’s leading hubs—Mumbai and Delhi—generate per capita non-aero revenues of $20.1 and $18.1, respectively, nearly matching global benchmarks such as London Heathrow ($21.6) and Tokyo Haneda ($19.9).
-Manish Pant