Handling commercial flights since 1962, Delhi's Palam Airport has evolved significantly over the decades to become India's busiest and one of the world's top 10 hubs. Its growth included the addition of Terminal 2 in 1986, which led to its current name, Indira Gandhi International Airport (IGIA). In 2005, the then UPA government decided to expand and modernize Delhi and Mumbai airports under a public-private partnership model. In 2006, private players were awarded 30-year concessions, with a conditional second 30-year extension. The GMR Group recently completed 20 years of its first concession period. GMR Airports chairman GBS Raju spoke to TOI about the road ahead.
Priorities for Delhi Airport
Delhi International Airport Ltd has developed capacity to handle 10.5 crore passengers annually across three terminals, four runways, and supporting infrastructure. In the last fiscal year (FY26), the airport handled close to 7.9 crore passengers, indicating sufficient capacity for the next five to six years. Airside capacity has been optimized to handle 1,700 aircraft movements daily, which could increase to over 2,000 with technology upgrades and air traffic controller training, in close collaboration with the Airports Authority of India.
Kiran Kumar Grandhi and Srinivas Bommidala, who previously headed the airport vertical, laid a strong foundation focusing on connectivity, new businesses, and city-side development. Today, all three terminals have multimodal city-side access. The airport is working closely with the government on initiatives to further enhance city-side connectivity.
The biggest focus now is on an automated people mover, expected to be completed in 30 months. Alignment and design are finalized, and the bid will be issued shortly. A decision on the new Pier E at Terminal 3 will be made in consultation with airlines.
Impact of US-Iran Conflict on Air Traffic
Raju acknowledged a short-term impact from the US-Iran war but expressed confidence in the medium to long-term prospects of the Indian economy and aviation. Before the West Asia crisis, the highest daily traffic was 2.5 lakh passengers, with an average of 2.2 lakh—similar to current figures. Traffic to the Middle East, mostly transfer traffic rather than origin-destination, has been affected. Some foreign airlines have added flights for a few months.
India is a $3.9 trillion economy with a per capita income close to $3,000. Aviation remains underpenetrated compared to many countries. As GDP rises to $5 trillion, $7 trillion, and beyond, long-term growth will be substantial. Raju views the West Asia issue as short-term, similar to the COVID-19 pandemic, after which India saw the fastest rebound in air travel. Indian airlines are also becoming stronger.
Impact of Noida Airport on IGIA
The Noida airport, opening next month, is expected to have minimal impact on IGIA. Aeronautical charges at Delhi airport are competitive and lower than Noida airport's tariffs. Given its connectivity, IGIA remains the most cost-effective and convenient option for all travelers. The Delhi government's decision to reduce VAT to 7% further strengthens IGIA's position. The catchment areas of the two airports differ, and Raju believes the entire air travel market in the region will grow.
Cargo Development Plans
IGIA is developing a cargo city spanning 1 crore square feet across two sites within the next 20 months. One site at Shahbad Mohammadpur, covering 50 lakh square feet, has direct airside access. FedEx has signed up for this site, and the airport is in advanced talks with other airlines seeking direct airside access for cargo. The other 50 lakh square feet site is located within the airport premises.
