India to add 100 airports under Rs 28,840 crore UDAN scheme

India, the world’s fastest-growing aviation market, will invest $3.06 billion as part of a programme to expand air connectivity to underserved regions, the government said on Wednesday.

The Union Cabinet has approved a modified UDAN scheme with a total outlay of Rs 28,840 crore, to be implemented from fiscal 2026-27 to fiscal 2035-36.

The country is relying on growth in the aviation sector to support job creation and drive economic expansion, although it continues to face challenges including inadequate infrastructure and taxation issues.

The programme, Ude Desh ka Aam Nagrik (UDAN), or “Let the common citizen of the country fly”, was first launched in 2016.

Under the modified scheme announced on Wednesday, India will develop 100 additional airports, including unused and underutilised airstrips, and increase subsidies for airlines to operate routes that would otherwise be commercially unviable.

The plan also includes the development of around 200 helipads and support for more than 400 aerodromes, with viability gap funding to be provided to airlines operating under the scheme.

The programme is aimed at expanding regional air connectivity across the country and improving transport infrastructure and access in tier-2 and tier-3 cities.

The scheme proposes subsidies amounting to $1.07 billion for airlines, according to a government statement.

The government led by Narendra Modi has set a target to increase the number of airports in the country to 350-400 by 2047, up from 163 in 2025.

(With inputs from Reuters)