Hyderabad airport contributes ₹68,000 crore to Telangana economy

Hyderabad’s Rajiv Gandhi International Airport (RGIA) has evolved into one of Telangana’s most significant economic drivers, contributing nearly ₹68,000 crore in gross value added (GVA) and supporting about 3.5 lakh jobs through direct, indirect and induced effects during 2024–25, according to an economic impact assessment by the National Council of Applied Economic Research (NCAER). 

Also Read | Hyderabad airport’s expansion shaped by tech shifts and passenger growth: GHIAL CEO Pradeep Panicker

When the adjoining GMR Aerocity is included, the overall RGIA ecosystem’s contribution rises to about ₹75,000 crore in GVA and close to 4.1 lakh jobs, accounting for more than 5% of the State’s GVA and a measurable share of national output and employment.

How the economic multiplier works

The study, conducted in October 2025, measures direct impacts generated by airport operations, indirect impacts through supplier linkages, and induced impacts arising from household consumption by employees across the airport’s value chain. The findings indicate that while airport operations alone generated about ₹30,000 crore in direct output and nearly ₹9,000 crore in GVA during 2024–25, these figures expanded sharply once indirect and induced effects were factored in, taking total output close to ₹1.5 lakh crore and employment to around 3.5 lakh.

Data presented in the NCAER tables show that the airport’s contribution accounted for about 4.63% of Telangana’s GVA and roughly 1.69% of State employment, underlining its structural importance to the regional economy.

Sharper growth projected by 2037–38

NCAER’s projections for 2037–38 suggest that RGIA’s role will deepen further. By that year, the combined economic impact of airport operations and the GMR Aerocity was estimated at about ₹2.13 lakh crore in GVA, supporting nearly 9.8 lakh jobs.

The study also underlines RGIA’s importance to trade and exports, particularly for Hyderabad’s life sciences and pharmaceutical industries. The airport’s dedicated pharma zone at the cargo terminal, supported by international certifications and temperature-controlled handling facilities, has enabled sustained high-value exports to markets in the Middle East, Europe, the Far East and Southeast Asia. This cargo capability helped maintain export momentum even during periods when national airborne exports faced pressure.

Passenger growth strengthens connectivity

Passenger traffic growth has reinforced RGIA’s role in enhancing Hyderabad’s competitiveness. The airport handled about 29.5 million passengers in FY25, including 24.4 million domestic and 5.1 million international travellers. Long-term projections indicate traffic could reach 88.1 million passengers by FY38, implying a compound annual growth rate of 8.8% between FY25 and FY38. The airport currently connects 72 domestic and 24 international destinations.

Placing RGIA within the broader Telangana growth story, the study notes that the airport’s rise has coincided with the State’s transformation into one of India’s most competitive economies, marked by strong GDP growth, rising foreign investment and Hyderabad’s emergence as a hub for technology, pharmaceuticals and global capability centres.