Union Budget 2025-26 Introduces Measures for Aviation Sector
The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, includes several measures aimed at enhancing regional connectivity and strengthening air cargo infrastructure in India.
The Ministry of Civil Aviation announced plans to expand the UDAN (Ude Desh Ka Aam Nagrik) regional connectivity scheme, which has operationalized 619 routes and connected 88 airports since its inception. The revamped initiative will introduce 120 new destinations and improve access to remote and hilly regions, including the North Eastern states. The scheme aims to increase the total number of passengers benefiting from affordable air travel, targeting an additional 4 crore passengers over the next decade.
India’s annual air passenger traffic has exceeded 350 million, with domestic air passenger growth averaging 10-12% per year over the last decade. The number of operational airports has more than doubled to 159, and plans are in place to develop 50 more airports within the next five years. The budget also allocates resources for new greenfield airports in Bihar, alongside the expansion of Patna Airport and the development of a brownfield airport at Bihta.
The budget also highlights the government’s focus on improving air cargo infrastructure. India’s air cargo sector has been growing at an annual rate of over 10%, with airport cargo handling capacity reaching 8.0 million metric tons in FY24. Investments will be directed toward enhancing air cargo warehousing, particularly for perishables, and streamlining customs processes to improve efficiency and trade facilitation.
The measures outlined in the budget reflect continued efforts to expand aviation infrastructure and improve connectivity across the country. The announcements were made as part of a press release issued by the Ministry of Civil Aviation.