Andhra Pradesh's Aviation Policy 2026–31 Could Reshape India's Export Logistics Map

Andhra Pradesh is making a bold play to position itself as India's eastern logistics and aviation gateway, with the state cabinet clearing the Andhra Pradesh Aviation Policy 2026–31 (APAP-2026) on June 6. A formal Government Order followed the same day, replacing a decade-old civil aviation framework with an ambitious five-year blueprint that ties together connectivity, industrial growth, and investment into a single integrated strategy.

The scale of ambition is hard to miss. AP currently accounts for just 1.5% of India's total passenger air traffic, well behind states like Maharashtra and Karnataka. The new policy targets a jump to 4% by 2035 and 7% by 2047, which would require annual passenger handling capacity to grow from 6.2 million to over 30 million. To bridge that gap, the policy introduces a 150-kilometre radial accessibility target for every citizen, to be achieved through nine new airports, a network of regional waterdromes, and upgraded domestic airstrips across the state.

But the policy's ambitions extend well beyond passenger numbers. AP Chambers president Potluri Bhaskara Rao described it as the first of its kind in India, pointing out that the framework simultaneously addresses aviation, aerospace manufacturing, logistics, and aircraft maintenance under one roof. Specialised Maintenance, Repair, and Overhaul (MRO) facilities and aerospace manufacturing clusters are part of the plan, all connected to the state's existing Aerospace and Defence Policy. The integration is expected to create thousands of jobs in airlines, airports, logistics firms, and technical training institutes.

The policy also reshapes the state's airport geography. The existing Visakhapatnam International Airport civil enclave will cease commercial operations once Bhogapuram International Airport becomes operational, with GMR mandated to develop Bhogapuram into a global airline hub. In the capital region, a greenfield airport at Amaravati is being planned as a major international gateway, with development timelines tied to stabilising global aviation conditions. Meanwhile, the Puttaparthi–Bengaluru corridor is being developed as a rising aerospace cluster, linking Anantapur's industrial base with Bengaluru's established aviation ecosystem.

For supply chain professionals and logistics operators, perhaps the most consequential part of APAP-2026 is its cargo expansion agenda.

Despite generating $7.4 billion in marine exports annually, Andhra Pradesh currently handles zero percent of international air cargo directly. The policy targets a dramatic scale-up from 6,240 metric tonnes to 4.27 lakh metric tonnes of air cargo capacity by 2035. Dedicated cargo hubs will be linked to deep-water ports, aquaculture zones, food processing clusters, and industrial corridors positioning AP as a critical node in India's export logistics network for seafood, pharmaceuticals, horticulture, and electronics, sectors where the state already holds national competitive strengths.

Cold chain logistics and specialised packaging are embedded in the framework's design, particularly in support of perishable exports like seafood and horticulture. The integration with warehousing infrastructure and drone ecosystems adds another dimension to what is shaping up as a multi-modal logistics overhaul rather than a standalone airport development programme.

The policy also tackles a practical frustration for business travellers: misaligned flight schedules between Visakhapatnam and Vijayawada have long forced overnight stays and pushed commuters toward premium rail services like the Vande Bharat Express. APAP-2026 mandates expanded small aircraft operations and regional airstrip development, backed by night-halting facilities, local parking bases, and viability gap funding modelled on Singapore's approach to stabilising new routes.

For MSMEs, the policy opens significant opportunities across 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), reducing friction for businesses looking to enter the sector.

Bhaskara Rao was careful to note that the policy should not be read narrowly as an airport infrastructure plan. Its deeper purpose is integration — weaving aviation capacity into AP's Swarna Andhra-2047 economic vision in a way that accelerates export competitiveness, drives industrial clustering, and positions the state as a logistics hub linking India's eastern coastline to global markets. If executed as designed, APAP-2026 could mark a genuine inflection point not just for Andhra Pradesh, but for how India's supply chain geography evolves over the next two decades.