India's civil aviation, ports, and shipping sectors are predicted to experience strong growth by FY31, driven by rising demand and infrastructure investments, according to the latest Economic Survey. The survey highlights the government's commitment to infrastructure development as a key driver for economic expansion and achieving the vision of 'Viksit Bharat @2047'.
Aviation Sector Expansion
India has emerged as the world's third-largest domestic aviation market, with significant potential for further expansion. The number of operational airports has more than doubled from 74 in 2014 to 164 in 2025. In FY25, Indian airports handled 412 million passengers, and this number is projected to increase to 665 million by FY31. Air cargo volume has also grown, reaching 3.72 million metric tonnes in FY25.
Despite this growth, the Economic Survey points out that India has a relatively low airport density compared to countries like the United States and China, indicating substantial headroom for expansion. To address this, the government is focusing on capacity expansion, regional connectivity, and technology-led upgrades. The Regional Connectivity Scheme (UDAN) has been instrumental in enhancing regional connectivity, operationalizing 657 routes connecting 93 airports, heliports, and water aerodromes. A modified version of UDAN aims to connect an additional 120 destinations and serve 40 million passengers over the next decade.
Ports and Shipping Sector Advancements
India's ports sector has demonstrated strong growth momentum, driven by capacity creation and increased cargo throughput. Mechanization, smart port initiatives, and digital trade facilitation have significantly improved operational efficiency across major ports, with container vessel turnaround times approaching global best standards. This improved efficiency is reflected in global rankings, with two Indian ports now among the top 30 and seven among the top 100 in the World Bank's Container Port Performance Index 2024.
The government is actively promoting private sector participation in port development, with PPP and captive operators expected to manage 80% of cargo by 2030. A pipeline of 48 PPP projects, worth approximately ₹23,000 crore, has been identified for the next five years (FY26-FY31) to further enhance port capacity and efficiency. In September 2025, the government approved a comprehensive package of ₹69,725 crore to revitalize the country's shipbuilding and maritime ecosystem.
Infrastructure Development and Policy Support
The Economic Survey emphasizes the importance of infrastructure development as a catalyst for economic growth. Public capital expenditure has increased significantly, from ₹2.63 lakh crore in FY18 to a projected ₹11.21 lakh crore in FY26. This substantial increase reflects the government's commitment to positioning infrastructure as a key driver of growth. The government's infrastructure strategy focuses on scale, integration, and quality, with sustained public capital expenditure acting as a powerful catalyst for growth. Coordinated investments across roads, railways, ports, civil aviation, energy, digital, and rural infrastructure have begun to generate strong multiplier effects for growth and productivity.
Several policy initiatives and reforms are also contributing to the growth of these sectors. These include the National Logistics Policy, digital platforms for streamlining operations and reducing costs, and legislative changes aimed at modernizing regulations and reducing aircraft leasing costs. These measures are expected to further boost efficiency, attract investment, and support the continued expansion of India's aviation, ports, and shipping sectors.
