India to invest $3 billion to expand aviation, boost regional connectivity

India will invest a significant amount of $3.06 billion to expand its aviation ecosystem and boost regional connectivity. This initiative includes plans to develop 100 new airports as part of a revamped scheme designed to improve the accessibility of air travel.

The programme known as Ude Desh ka Aam Nagrik (UDAN), or “Let the common citizen of the country fly,” has been granted approval by the cabinet to operate for a duration of 10 years from fiscal year 2026-27 to fiscal year 2035-36. The scheme will fund both infrastructure and route viability through viability gap funding (VGF).

The plan includes developing 100 new airports from unused airstrips with an outlay of INR 12,159 crore over eight years. To support sustainability, the government will provide operation and maintenance funding for up to three years, estimated at INR 2,577 crore for around 441 aerodromes.

The scheme also proposes building 200 modern helipads in remote and underserved regions at a cost of INR 3,661 crore, improving last-mile connectivity and emergency access.

Additionally, INR 10,043 crore has been allocated as Viability Gap Funding (VGF) over 10 years to support airline operations on regional routes. The government’s long-term ambition or aim is to increase the total number of airports in the country to 350-400 by 2047, up from 163 in 2025, a target aligned with the country’s broader economic vision.

The original UDAN Scheme was launched in October 2016 with the objective of making air travel affordable and strengthening connectivity to Tier-2 and Tier-3 cities.