With rising air travel demand, infrastructure upgrades, and new airports, India’s Tier-2 cities could become key drivers of the country’s aviation growth story.
India’s aviation industry is on the brink of a transformative shift—and it may not be the metros that lead the charge. As congestion and saturation affect Tier-1 city airports like Delhi and Mumbai, Tier-2 cities such as Indore, Surat, Lucknow, Bhubaneswar, and Coimbatore are emerging as high-potential growth centers. Backed by increasing regional demand, government initiatives, and expanding infrastructure, these smaller cities could well power the next aviation boom in India.
What Defines a Tier-2 City in India?
Tier-2 cities in India are classified as smaller urban hubs that are rapidly developing in terms of infrastructure, connectivity, population, and economic growth. These cities typically have:
- Populations between 1–4 million
- Growing middle-class segments
- Affordable land and operational costs
- Limited but fast-growing air connectivity
Why Tier-2 Cities Are Gaining Momentum in Aviation
1. Growing Middle-Class Aspirations
- Rising disposable incomes and aspirational lifestyles are pushing more people from Tier-2 cities to choose air travel over rail or road.
- As per DGCA data, domestic air traffic from non-metro airports has grown by over 30% in the last five years.
2. UDAN Scheme Boost
- The government’s UDAN (Ude Desh ka Aam Nagrik) scheme has connected remote regions with affordable air travel.
- Over 450 new regional routes have been launched since the scheme’s inception in 2017.
- Airports like Jharsuguda (Odisha) and Darbhanga (Bihar) are now witnessing significant footfall.
3. New Airport Infrastructure
- Upcoming airports in Jewar (Noida), Navi Mumbai, and Bhogapuram are strategically placed to ease pressure from metros and serve nearby Tier-2 regions.
- The AAI (Airports Authority of India) is investing over ₹25,000 crore in airport modernization across smaller cities.
4. Private Carrier Interest
- Airlines like IndiGo, Akasa Air, and SpiceJet are aggressively expanding operations to Tier-2 and Tier-3 cities.
- Routes like Indore-Hyderabad, Ranchi-Patna, and Varanasi-Bengaluru are gaining popularity and profitability.
Data Highlights
| Metric | Tier-1 Cities | Tier-2 Cities |
|---|---|---|
| Avg. Airfare (one way) | ₹4,500 | ₹3,200 |
| YoY Passenger Growth (2023-24) | 8.5% | 15.2% |
| Airport Expansion Projects | 5 | 25+ |
| New Routes Launched (2024) | 40 | 90+ |
Strategic Location Advantage
Most Tier-2 cities are located within 200–500 km of major metro cities, making them attractive for both:
- Feeder traffic for long-haul international routes
- Point-to-point domestic connections for business and tourism
Cargo & Logistics: The Next Growth Frontier
The rise of e-commerce in semi-urban India is fueling the need for robust air cargo networks. Cities like Lucknow, Nagpur, and Kochi are now being developed as cargo hubs, with cold chain logistics, freight terminals, and night operations.
Challenges Ahead
Despite the optimism, there are hurdles to overcome:
- Limited air traffic control and night landing facilities
- Inadequate last-mile connectivity
- Shortage of trained aviation professionals in non-metro regions
The government and private sector must collaborate to build sustainable aviation ecosystems in these regions.
The Future Outlook
Industry experts predict that by 2030, Tier-2 cities could account for 40–50% of India’s total domestic passenger traffic. With dedicated regional airlines, cargo corridors, and digital infrastructure, the next decade may witness India’s aviation map shifting dramatically toward these rising cities.
Conclusion
India’s Tier-2 cities are no longer just catching up—they’re taking off. With the right policy support, investment, and private sector interest, these cities can redefine air travel in India. The next aviation boom may not come from Delhi or Mumbai, but from Dehradun, Dibrugarh, and Durgapur.
