UDAN: India’s Civil Aviation Sector Soars to New Heights

The Economic Survey of 2022-23 has highlighted the potential of India’s civil aviation sector to grow further due to the increasing demand from the middle class, higher disposable incomes, and favorable demographics. The survey also noted that air travel has rebounded significantly with the lifting of the coronavirus pandemic-related curbs. The survey noted that the government’s UDAN (Ude Desh ka Aam Naagrik) scheme has considerably enhanced regional connectivity through the opening of airports in the hinterland.

Under the UDAN scheme, the total number of tourism routes has increased to 59, and presently, 51 are operational. The survey further stated that the current financial year has further shown a rebound, with both passenger and cargo movement close to the pre-COVID-19 levels. In December 2022, the total number of passengers carried stood at 150.1 lakh, which was 106.4 percent of the pre-Covid level.

The government has also approved Rs 4,500 crore for the revival of existing unserved/underserved airports/airstrips of the state governments, the Airports Authority of India (AAI), public sector undertakings, and civil enclaves. It has also granted in-principle approval for the setting up of 21 greenfield airports. Moreover, an amount of Rs 104.19 crore has already been reimbursed to the Airport Authority of India. It is in the form of viability gap funding (VGF) during FY21 and FY22 towards the UDAN.