The Vision: Ude Desh ka Aam Nagrik
At the heart of this transformation is a flagship government initiative known as the Regional Connectivity Scheme, or UDAN, which translates to 'Let the Common Citizen of the Country Fly'. Launched in 2016, its core objective is to make air travel affordable
and accessible, taking it beyond the major metropolitan hubs to Tier-2 and Tier-3 cities. Before the scheme, India had hundreds of under-serviced or completely unused airstrips. The UDAN scheme was designed to revive these airports, develop new ones, and encourage airlines to operate on routes that were previously not considered financially viable. By doing so, the government aims to fuel economic growth, boost tourism, and create a more integrated and mobile India.
How It Works: Connecting the Dots
The UDAN model is built on a clever system of incentives and financial support. To encourage airlines to fly on less-trafficked regional routes, the government provides Viability Gap Funding (VGF), a subsidy to cover potential losses and make these operations sustainable. In exchange, airlines must cap fares for a percentage of seats on these flights, with the benchmark often cited as around ₹2,500 for a one-hour flight. The scheme is a collaborative effort, with both the central and state governments offering concessions, such as reduced taxes on aviation fuel and waiving airport charges like landing and parking fees. This shared approach has been crucial in operationalizing hundreds of new routes and bringing dozens of new airports, heliports, and water aerodromes into the national aviation network.
From 74 to Over 160: The Progress So Far
The numbers tell a story of rapid expansion. In 2014, India had 74 operational airports. By mid-2026, that number has surged to over 160, with the UDAN scheme being a primary catalyst for this growth. Since its inception, the program has successfully operationalized over 650 routes, connecting nearly 100 unserved and underserved airports. As a result, more than 16 million passengers have taken advantage of these newly connected, affordable flights. This has dramatically changed the travel landscape, especially in remote, hilly, and island regions, improving access to everything from business opportunities to emergency medical services. The government's ambition doesn't stop here, with plans to build 100 new airports over the next decade and a 'Modified UDAN' scheme extending support until 2036.
Economic Ripples in Small-Town India
The impact of a new airport in a smaller city extends far beyond the runway. For many towns, air connectivity has been a game-changer, unlocking new potential for tourism and local businesses. Destinations with religious or cultural significance have seen a surge in visitors, creating jobs and boosting local economies. The increased accessibility makes it easier for companies to invest in these regions, knowing that transport and logistics are more reliable. This spillover effect is a core part of the strategy, integrating regional economies with larger national markets and providing an impetus for growth outside of the traditional metro areas.
Turbulence and Headwinds
Despite its successes, the journey has not been without challenges. A significant number of routes awarded under UDAN have been discontinued. Airlines often face the harsh reality of low passenger demand on certain routes, making them financially unviable even with subsidies. Operating smaller aircraft, which are necessary for many regional runways, comes with higher per-seat costs, and low occupancy can quickly erode profitability. Furthermore, some critics point out that improved road and rail networks offer a cheaper and sometimes more convenient alternative for shorter distances. The slowdown in the pace of operationalizing new aerodromes in recent years and declining passenger counts on some UDAN routes highlight the scheme's ongoing struggle with long-term sustainability.
