India has allocated a significant amount of $3.06 billion towards the enhancement of its aviation infrastructure and the improvement of regional connectivity.
This initiative involves the development of 100 additional airports as part of a revamped program designed to improve the accessibility of air travel.
Also Read: POSCO International to Establish Rare Earth Supply Chain
The initiative known as Ude Desh ka Aam Nagrik (UDAN), which translates to "Let the common citizen of the country fly", has been granted approval by the cabinet to operate for a duration of 10 years, spanning from fiscal year 2026-27 to fiscal year 2035-36.
Importantly, the restructured program will not only provide funding for infrastructure, but also ensure the sustainability of transportation routes.
The government announced an investment of $3 billion, with approximately INR 28,840 crore specified as total budgetary support by the Ministry, and INR 10,043 crore designated for VGF (viability gap funding) to support airlines, as elucidated by Union Minister of Civil Aviation, Ram Mohan Naidu Kinjarapu, during his platform appearance.
India, presently the aviation market with the highest growth rate globally, is relying on an increase in air travel to fuel economic development and employment opportunities. Nevertheless, it remains confronted by obstacles such as insufficient infrastructure and taxation concerns.
The Ministry of Civil Aviation announced the decision, stating that the Cabinet approved the subsequent phase of the program aimed at enhancing regional connectivity.
Also Read: Report Urges to Advance Sustainable Agriculture in Viet Nam
The magnitude of the growth is substantial. In addition to the construction of 100 new airports, the proposal also involves the establishment of 200 heliports, which will enhance the accessibility of aviation services to distant and rural locales.
Kinjarapu characterized the decision as a momentous one for the industry, emphasizing how the program has significantly transformed India's aviation infrastructure since its inception in 2016. In the past decade, UDAN has successfully incorporated 663 fresh routes and introduced 95 new airports, facilitating travel for approximately 16.2 million passengers. He stated that the upcoming phase will greatly increase the impact.
Also Read: UAE Pledges to Supply Crude Oil to Korea With Top Priority
With the recent cabinet approval, an additional 100 airports and 200 heliports will be included, benefiting an estimated four crore passengers. Airports serve not only as transit points but also as key economic drivers for the surrounding areas. The government has an ambitious long-term goal to expand the total number of airports in the country to 350-400 by 2047, which is an increase from the current 163 in 2025.
This target is in line with the overall economic vision of Prime Minister Narendra Modi. India is intensifying its focus on aviation as a means to drive inclusive economic growth with the enhancement of the UDAN scheme. The country aims to leverage connectivity to stimulate regional economies and broaden access to air travel for a larger segment of the population.