Budget 2026: Aviation Sector Eyes New Heights with UDAN Scheme Boost

• Budget 2026 is expected to prioritize strengthening air connectivity, especially to remote and hilly areas, through the UDAN scheme.
• The UDAN scheme, launched in 2017, aims to make air travel affordable and connect unserved/underserved regions, with 657 operational routes connecting 93 airports.
• Despite connecting over 1.6 crore passengers, challenges like route closures, aircraft shortages, and weak demand persist, with 15 UDAN airports currently non-operational.
• A revised UDAN scheme is awaiting approval, targeting 120 new regional destinations and 4 crore passengers in 10 years, with a focus on hilly and North-Eastern regions.
• Financial assistance of ₹4,494 crore has been provided as Viability Gap Funding (VGF) to support airlines on regional routes.

Why It Matters: Budget 2026 is set to boost the UDAN scheme, aiming to enhance regional air connectivity and address existing challenges.