💹 Economy & FinanceMAINS · GS3.9 · GS2.10

PM launches 'Viksit UDAN', the next phase of India's regional air-connectivity scheme

Prime Minister Modi launched the next phase of UDAN and inaugurated a new terminal at Jodhpur, building on a scheme that has opened 669 routes and 95 airports since 2016; the Modified UDAN Scheme carries a ~₹29,000 crore outlay to develop 100 aerodromes over ten years.

What happened

For Prelims

For UPSC: Frame UDAN as inclusive, infrastructure-led growth — using Viability Gap Funding and fare caps to make flying affordable and to develop unserved airports and towns. Anchor the numbers (669 routes, 95 airports, 1.66 crore passengers, ₹29,000 crore Modified UDAN, 100 aerodromes), the VGF model, and links to regional development, tourism, logistics and PM GatiShakti under Viksit Bharat 2047.
What it is NOT: This launched the next phase and a new terminal, not a brand-new scheme; UDAN has run since 2016. The ₹29,000 crore and 100-aerodrome figures are the Modified UDAN Scheme's ten-year targets, not amounts already spent or built. UDAN provides Viability Gap Funding for regional routes — it is not free air travel.

For Mains

Syllabus: GS3.9 · GS2.10 · Linkage L2

Anchor
Regional air connectivity as inclusive, infrastructure-led development — connecting smaller towns and remote regions and making air travel affordable to the common citizen.
Substantiation (data)
UDAN (since Oct 2016): 669 routes, 95 airports/heliports/water aerodromes, 1.66 crore passengers; the Modified UDAN Scheme (25 March 2026) — ~₹29,000 crore over ten years, 100 aerodromes from unserved airstrips; new Jodhpur terminal inaugurated.
Exemplification
The Viability Gap Funding model with capped fares as a concrete tool of affordable connectivity, plus water aerodromes and heliports extending reach to hilly and island areas.
Problematisation
Route sustainability after VGF ends, thin traffic on some routes, airport/airspace capacity, aircraft and pilot availability, and financial health of regional carriers challenge the model.
Way-forward
Strengthen demand aggregation and last-mile links, sustain viable routes, build regional airport capacity under GatiShakti, and integrate aviation with tourism and logistics.
Position
Government stance: UDAN democratises air travel and drives balanced regional development towards Viksit Bharat 2047.
Deploys into: Transport & aviation infrastructure (GS3.9 infrastructure — airports & connectivity) · government schemes for regional development (GS2.10 government policies & interventions) · Viability Gap Funding, regional connectivity and aviation-led growth under Viksit Bharat 2047.
Ministry of Civil Aviation · 2026-07-04 · PRID 2281051 · PIB source ↗
Related: Economy & Finance · this week's cards · Civil aviation & connectivity