India to build 200 low-cost airports in next 20 years

India plans to build 200 low-cost airports in the next 20 years to connect tier-II and tier-III cities, said a civil aviation ministry official.

"As the operating and service costs at the major airports are phenomenally high, there are plans to build small no-frill airports. They will have the basic infrastructure and will be like upgraded high class railway stations," he said.

There is a huge opportunity for MRO sector (Maintenance, Repair & Overhaul sector).

"Civil aviation is a highly-regulated sector. This is a good opportunity and we are focusing for India to emerge as a MRO hub," he added.

The non-metro airports in India presently accounts for only about 30% of the total air traffic, but is expected to rise to 45% in the next few years.

The government also plans to construct 15 additional airports in the country under the Greenfield Airport Policy, by identifying the most suitable low cost viable model.

India is planning to invest over $120 billion in the development of airport infrastructure; improvement in connecting infrastructure; development of world class air navigation services infrastructure and other related activities to improve the air connectivity.

India, one of the fastest growing aviation market in the world, is expected to become the 3rd largest after US and China by 2020.

International Air Transport Association's (IATA) Airline Industry Forecast that in 2012-2016, India's domestic air travel market would be among the top 5 globally, experiencing the second highest growth rate at CAGR of 13.1%.