Hyderabad: The Rajiv Gandhi International Airport (RGIA) in Hyderabad has emerged as a major driver of Telangana’s economy, contributing nearly Rs 68,000 crore in gross value added (GVA) and supporting about 3.5 lakh jobs, according to a study by the National Council of Applied Economic Research (NCAER).

The economic impact assessment, carried out by NCAER in October 2025, estimates that the airport accounts for about 4.6 per cent of the state’s GVA. The study examined the airport’s direct operations as well as the ripple effects generated through supply chains and household spending.

RGIA, which began operations in 2008, has grown into a key economic asset for the state. Beyond passenger traffic, it supports trade, cargo movement and investment flows linked to Hyderabad’s expanding business base.

The study used an input-output framework to assess the airport’s direct, indirect and induced impact on output, GVA and employment. Direct impact includes on-site airport operations and related income. Indirect effects arise from procurement and linkages with suppliers, while induced impact reflects spending by employees and others whose livelihoods are connected to airport activity.

According to the study, the Hyderabad airport’s economic footprint extends well beyond its core aviation services. The integrated cityside development, including GMR Aerocity, has added commercial offices, hospitality facilities, logistics parks and industrial capacity around the airport, strengthening its contribution to the economy.

Cargo operations help connect to global markets

The report also highlighted the importance of cargo operations, particularly in pharmaceuticals and perishables, which have helped connect Hyderabad to global markets. Planned expansion of cargo terminals is expected to further boost export-linked activity.

The study noted that ongoing and proposed capital expenditure at the airport would generate construction employment in the short term and address long-term operational needs across airside, terminal and digital infrastructure.

On governance and sustainability, the airport operates under a public-private partnership model, with a focus on service standards and stakeholder accountability. It has also adopted energy efficiency and carbon management measures as part of its sustainability efforts.The NCAER study said RGIA has moved beyond being a transport hub to become a significant contributor to Telangana’s growth, with its impact felt across multiple sectors of the economy.