By Chaitali Bag
The skies of India are set to witness a transformative journey as the government unveils a modified UDAN (Ude Desh ka Aam Nagrik) scheme, paving the way for enhanced regional connectivity and bolstered infrastructure in the aviation sector. Announced by Finance Minister Nirmala Sitharaman during her Union Budget 2025-26 speech, this visionary initiative promises to connect 120 new destinations and aims to serve a staggering 4 crore passengers over the next decade. It is an ambitious leap toward making air travel accessible to every Indian, fostering inclusivity, and breathing life into the dream of “Viksit Bharat 2047.”
The groundbreaking reforms brought forth by the revamped UDAN scheme symbolize the government’s steadfast commitment to delivering affordable air travel to smaller towns, hilly terrains, and the Northeast region. The scheme has already proven its worth by operationalizing 619 routes and connecting 88 airports, including water aerodromes and heliports. By supporting helipads and smaller airports in aspirational districts, this initiative is poised to bring transformative opportunities to regions that have long been devoid of robust air connectivity. For 1.4 crore passengers who have already benefitted from the UDAN scheme, the future promises even greater possibilities.
A Push for Infrastructure and Accessibility
One of the most exciting developments on the horizon is the facilitation of greenfield airports in Bihar, a state that has been long awaiting aviation infrastructure upgrades. This effort, coupled with the expansion of Patna Airport and the establishment of a brownfield airport in Bihta, represents a crucial step in meeting the future demands of an emerging economy. Greenfield airports, developed from scratch on previously undeveloped land, will not only enhance connectivity but also create local employment opportunities and spur economic growth in the region. Bihar stands on the cusp of becoming a modern aviation hub, symbolizing the power of well-deployed government initiatives.
The broader UDAN scheme underscores the vision of equitable development. By fostering regional connectivity, it aims to bridge the gap between metros and underserved areas, thus integrating remote regions into the national mainstream. For hilly districts and the Northeast, where transport infrastructures like roads are often challenging to establish, aviation has emerged as a lifeline. The additional focus on developing aviation infrastructure in these regions will bring better mobility for residents, along with increased tourism potential and greater commercial opportunities.
A Pragmatic Budget Allocation
While the allocation for the Ministry of Civil Aviation has seen a slight decline—down 10% to Rs 2,400.31 crore—the UDAN scheme has secured Rs 540 crore, reflecting a modest yet noteworthy 7.5% increase from last year. This figures as a strategic decision to focus on key priorities such as ensuring the viability of regional airports and supporting air mobility solutions aligned with India’s growth narrative. The government’s provision of Viability Gap Funding (VGF) for routes in the Northeast and other remote regions is a commendable approach to ensure that regional connectivity becomes financially sustainable in the long run.
It’s important to note the recalibration between fiscal prudence and strategic investment. With thoughtful allocations, the government has ensured that resources are directed where they will have maximum impact, such as production-linked incentives (PLI) for drones and drone components, which saw their budgetary allocation rise to Rs 57 crore from Rs 33 crore. This emphasis on advanced technology and innovation aligns seamlessly with India’s aspirations of becoming a global hub for modern aviation.
Seamlessly Tied to National Growth
Beyond the immediate impact on connectivity and aviation, the UDAN scheme embodies a larger vision for India’s economic and social integration. Air connectivity is a multiplier force—it supports tourism, facilitates trade, and provides faster access to health care and education for underserved regions. The scheme, therefore, aligns directly with the government’s mission of creating a truly inclusive and sustainable economy.
Entrepreneurs and businesses in tier-2 and tier-3 cities will thrive, leveraging this newfound accessibility to expand their networks and tap into more lucrative markets. Meanwhile, aspirational middle-class families can now experience the dream of faster, more affordable travel, eliminating the age-old perception that air travel is a luxury limited to urban elites.
Opening the Skies for a Brighter Future
As Finance Minister Nirmala Sitharaman aptly highlighted, UDAN has empowered middle-class Indians by fulfilling their aspirations for faster travel. In every humble flight taking off from a small town, there lies an undeniable testament to a modernizing India. The vision of connecting 120 new destinations and flying 4 crore passengers in the next 10 years is not merely a target—it is a bold step toward weaving India into a global tapestry of seamless connectivity.
India’s aviation growth reflects a nation embracing its potential. As Vinay Dube, CEO of Akasa Air, rightly said, “The focus on aviation strengthens India’s position as a global hub.” This proliferation of regional air connectivity under UDAN will open doors to countless opportunities, knitting the country tighter with every route launched.
The Union Budget 2025 proposes significant advancements for India’s aviation sector, as noted by Girish Nair, Partner and Head of Aviation at KPMG in India. Key measures include a modified UDAN scheme to enhance regional connectivity, investments in tourism promotion and medical travel, and notable support for air cargo infrastructure and policies to strengthen logistics and trade. With an emphasis on connectivity, affordability, manufacturing, and supply chain resilience, the budget aims to create a dynamic and competitive aviation ecosystem while fostering economic growth, employment, and infrastructure development. This positions air travel as a vital driver of national progress and accessibility.
The journey ahead is as exhilarating as it is ambitious. As small towns resonate with the hum of airplanes and once-isolated regions gush with new life, the skies will not just connect points on a map but the aspirations of a billion people. This is not just a story of infrastructure—it’s a tale of progress, unity, and dreams taking flight. The UDAN scheme is India spreading its wings. And the future looks limitless.
