Andhra Pradesh Clears New Aviation Policy, Sets Sight on Becoming India’s Eastern Gateway

Vijayawada: Andhra Pradesh (AP) has set its sights on becoming India’s “Eastern Gateway” with the clearance of the Andhra Pradesh Aviation Policy 2026-31 (APAP-2026). A Government Order was issued on June 6 after the Cabinet approval, replacing the State’s decade-old civil aviation framework with a sweeping five-year plan that blends connectivity, industry, and investment into one integrated blueprint.

At its core, the policy is about scale. AP currently accounts for just 1.5% of India’s passenger traffic, far behind States like Maharashtra and Karnataka. The new framework aims to lift that share to 4% by 2035 and 7% by 2047, requiring a dramatic expansion in annual passenger handling capacity from 6.2 million to 30.38 million. To make this possible, the policy sets a 150 km radial accessibility target for every citizen, to be achieved through the development of nine new airports, a network of regional waterdromes, and the upgrading of minor domestic airstrips across the State.

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AP Chambers president Potluri Bhaskara Rao called it “the first of its kind in India,” noting that the policy goes beyond passenger transport to establish AP as a hub for aviation, aerospace, logistics, and aircraft maintenance.

The framework includes specialised Maintenance, Repair, and Overhaul (MRO) facilities, aerospace manufacturing clusters, and component industries, all tied into the State’s broader Aerospace and Defence Policy. This integration is expected to generate thousands of jobs across airlines, airports, logistics firms, and technical institutes.

The blueprint also redraws the State’s aviation map. The Visakhapatnam International Airport civil enclave will shut down for commercial flights once Bhogapuram International Airport opens, with GMR tasked to elevate Bhogapuram into a global airline hub. In the capital region, a greenfield airport at Amaravati is projected to become a major international gateway once global conditions stabilise.

Meanwhile, the Puttaparthi–Bengaluru corridor is being positioned as a rising aerospace cluster, linking Anantapur’s industrial base with Bengaluru’s established aviation ecosystem. Beyond infrastructure, the policy tackles long-standing frustrations for business travellers. Unsynchronised flight schedules between Visakhapatnam and Vijayawada have often forced overnight stays, pushing commuters toward premium rail options like the Vande Bharat Express.

big bang

APAP-2026 mandates the expansion of small aircraft operations and regional airstrips, backed by incentives such as night-halting facilities, local parking bases, and Singapore-style viability gap funding to stabilise new routes.

Cargo expansion is another cornerstone. Despite generating $7.4 billion in marine exports, AP currently handles 0% international air cargo directly. The policy sets a target to scale up capacity from 6,240 metric tonnes to 4.27 lakh metric tonnes by 2035, with dedicated hubs linked to deep-water ports, aqua zones, food processing clusters, and industrial corridors. This logistics push is expected to boost export competitiveness for seafood, pharma, horticulture, and electronics — sectors where Andhra Pradesh already leads nationally.

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Bhaskara Rao cautioned that the policy should not be seen as a narrow airport development plan. He emphasised its integration with drone ecosystems, export promotion, tourism, and warehousing infrastructure.

For MSMEs, the framework opens opportunities in ground handling, aviation catering, specialised packaging, cold chain logistics, precision engineering, and airport retail. All approvals and clearances will be streamlined through the Andhra Pradesh Airports Development Corporation Limited (APADCL).

By embedding aviation into the State’s Swarna Andhra-2047 economic vision, the AP government is signalling more than just connectivity. It is laying the foundation for an industrial and logistics revolution that could redefine the State’s role in India’s growth story.

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