India cabinet clears INR16.7B for new Srinagar airport terminal

India cabinet clears INR16.7B for new Srinagar airport terminal

India Cabinet Approves Expansion of Srinagar Airport to Boost Regional Connectivity and Economic Growth

The Indian cabinet has approved the construction of a new terminal at Srinagar International Airport, a key infrastructure project aimed at enhancing regional connectivity and stimulating economic activity in Jammu and Kashmir. The expansion, estimated to cost INR 1,000–1,200 crore, includes the development of a modern terminal, runway upgrades, and improved airside and support facilities to accommodate increased passenger traffic and heavier aircraft, including international flights according to project details.

The project, slated for completion between 2027 and 2028, is expected to address growing demand for air travel in the region and support the government's broader goal of integrating remote areas into the national economy. Analysts note that the expansion will likely catalyze growth in tourism, trade, and real estate. Improved infrastructure is projected to attract more airlines and routes, potentially increasing passenger numbers and fostering business activity in Srinagar as market analysis indicates.

Real estate professionals highlight that proximity to the upgraded airport could drive demand for residential and commercial properties. Areas near the airport may see increased investment in hotels, retail spaces, and office complexes, mirroring trends observed in other Indian cities with expanded aviation hubs according to real estate experts. Additionally, the project is anticipated to create short-term construction jobs and long-term employment opportunities in sectors such as hospitality and logistics.

However, challenges remain. Regulatory delays, environmental concerns, and market volatility could impact the project's timeline and economic outcomes. Investors are advised to monitor developments closely, as regional economic conditions and policy changes may influence returns on property and infrastructure-linked investments according to investment analysis.

The Srinagar airport expansion underscores the government's focus on infrastructure-driven growth in strategically important regions. While the project's long-term benefits are contingent on effective execution, it represents a significant step toward unlocking Kashmir's economic potential and aligning it with national development priorities.

Source: Srinagar Airport Expansion Set to Unlock Kashmir's Property and Investment Potential, MagicBricks (2026)