With Indian air passenger traffic projected to increase by nearly 50% from 412 mn in FY 2025 to 600 mn by FY 2030, non-aeronautical revenue is poised to see an exponential rise—benefiting from both increased passenger numbers and improved per-passenger spending. Even a modest increase of USD 1 (INR 87) per passenger across the projected traffic base could translate into an USD 29.5 bn in annual non-aero revenues for Indian airports in 2030. A 26% from the existing value, finds Knight Frank India report.
This creates a strong incentive for operators to invest in premium retail zones, food courts, entertainment facilities, and destination experiences that attract both travellers and non-travelling visitors.
Aerocities large-scale urban ecosystems planned around airports can integrate office spaces, hospitality, retail, entertainment, logistics, and convention centres. Such developments allow airports to transform from transit points into vibrant economic hubs, supporting job creation, tourism, and global connectivity. For airlines and operators, aerocities mean steady non-aero income, while for governments they become engines of urban development.
Propelled by a confluence of structural and policy drivers, rising disposable incomes, a rapidly expanding middle class, deeper regional connectivity and significant capacity augmentation across both metro and non-metro airports. The industry’s evolution is further supported by private sector participation, modernisation of airport infrastructure, and increasing integration with global air travel networks.
The non-aero revenue will no longer be a secondary income source but a central growth lever for the aviation sector. By integrating real estate development with aviation, India’s airports can position themselves as growth accelerators in the global economy.
Dr. Rajeev Vijay, Executive Director – Government and Infrastructure Advisory, Knight Frank India, said, “The fact that Mumbai and Delhi airports are already generating per passenger non-aero revenues at par with Heathrow and Haneda demonstrates the potential of India’s aviation sector. With private equity and institutional investors eyeing growth opportunities, the next phase will be defined by aerocity-led development. These urban ecosystems can transform airports into economic powerhouses, while unlocking new revenue streams that are less vulnerable to cyclical passenger traffic.”
