India’s Airport Development Accelerates with 91% Capital Target Achieved and UDAN Scheme Boosting Connectivity
India’s aviation sector continues to soar as the country’s airport development programme makes remarkable strides. The latest Economic Survey for 2024-25 has revealed that the Airports Authority of India and private airport operators have successfully achieved 91% of their combined capital expenditure (capex) target for the period between 2019-2020 and 2024-2025. With a total target of ₹91,000 crore, this achievement highlights the sector’s robust growth and the government’s commitment to expanding India’s aviation infrastructure.
As of November 2024, the country is well on track to meet its ambitious targets, with several key projects nearing completion or already operational. Among the highlights are the upcoming greenfield airports—Noida International Airport and Navi Mumbai International Airport—which are set to revolutionise the aviation landscape by providing much-needed capacity and improving regional connectivity. In addition to expanding airport infrastructure, India’s airports have also achieved significant progress in cargo handling. With a combined capacity of 8 million metric tonnes, Indian airports have become increasingly important for the global movement of goods. This growth not only strengthens India’s position in international trade but also highlights the role of air freight in facilitating economic activity across the country. One of the key drivers of growth in India’s aviation sector has been the Regional Connectivity Scheme (RCS), better known as UDAN (Ude Desh Ka Aam Naagrik). The scheme aims to make air travel more affordable and accessible, particularly to underserved and unserved regions. As of December 2024, 88 airports and 619 air routes are operational under UDAN, facilitating easier air travel for millions of passengers.
The UDAN scheme has already contributed to improved regional connectivity, enabling more people to fly and boosting economic activity in smaller cities. By providing incentives such as viability gap funding to airlines, the government has made it possible for airlines to operate on routes that would otherwise be unprofitable, further opening up air travel to a wider demographic. The impressive progress in India’s airport and aviation development is a testament to the government’s dedication to improving infrastructure and enhancing air connectivity across the country. However, despite the positive strides, challenges remain. The ongoing efforts to modernise airports, particularly in Tier II and Tier III cities, are crucial to meeting the growing demand for air travel.
For the aviation sector to continue its upward trajectory, further investments in infrastructure will be essential. The focus on expanding both brownfield and greenfield airports will help address capacity constraints and ensure that airports can meet future demands. Moreover, improving airport facilities and services, such as better cargo facilities, enhanced passenger amenities, and streamlined regulatory frameworks, will be key to the sector’s continued growth. As India’s airports continue to evolve and expand, the government’s push for increased public-private partnerships (PPPs) will help accelerate development. These partnerships, combined with policy reforms aimed at easing operational challenges, will provide a solid foundation for the aviation industry to thrive in the coming years. India’s aviation sector is poised for further growth, and with strategic investments in infrastructure, the future looks promising. Whether it’s expanding capacity, enhancing connectivity, or boosting regional accessibility, the country is making significant strides in creating a world-class aviation ecosystem.
