Indian Civil aviation ministry gets Rs 2,357 cr allocation

The budgetary allocation for the Indian civil aviation ministry has been reduced to Rs 2,357.14 crore for the current fiscal ending next March, according to the Union Budget 2024-25 presented by Indian Finance Minister Nirmala Sitharaman on Tuesday.

The budget for the regional air connectivity scheme has also been reduced to Rs 502 crore from Rs 850 crore which will be used for the revival of 22 airports, the commencement of 124 RCS routes, and Viability Gap Funding for North East Connectivity.

A new scheme has been formulated to improve air connectivity and aviation infrastructure in the northeast region, according to a document.

However, the Production Linked Incentive (PLI) scheme for drones and drone components will receive a higher allocation of Rs 57 crore this fiscal, compared to Rs 33 crore in the 2023-24 revised estimates.

For 2024-25, the allocations for the Directorate General of Civil Aviation (DGCA) and the Bureau of Civil Aviation Security (BCAS) have been reduced to Rs 302.64 crore and Rs 89 crore, respectively.

In the Budget, Rs 57.14 crore has been allocated for the Hotel Corporation of India Ltd to meet its statutory and other obligations under the ministry.

An amount of Rs 85 crore has been allocated this fiscal for providing medical benefits to retired employees of Air India, which was sold to Tata Group in 2022. In 2023-24, the amount stood at Rs 51 crore.

Indian Aviation Industry

Being the third-largest aviation market in the world after the US and China, India has witnessed a rise in daily domestic flights from 1.85 lakh in 2014 to 4.2 lakh in the fiscal year 2023–2024.

Significant developments in India’s aviation industry were noted by Sitharaman in her interim budget statement on February 1, 2024. These included the addition of 517 new air routes, the growth of airports to 149, and the projected increase in passengers to 1.3 crore.

In addition, Sitharaman highlighted record orders for aircraft that surpassed 1,000, highlighting ten years of rapid expansion that had revitalized the aviation sector.