Union Budget 2025-26 Fuels Growth in Aviation Sector

Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman presented Union Budget 2025-26 in the Parliament today. The Ministry of Civil Aviation welcomes the significant announcements made in the Budget, reaffirming the government’s commitment to strengthening regional connectivity in the country.

Union Minister for Civil Aviation Sh. Ram Mohan Naidu while appreciating Budget’s focus on Connectivity and Tourism remarked, “This Budget propels us toward our vision of Viksit Bharat 2047, reinforcing the Government’s commitment to enhancing regional connectivity with the idea of ‘Ease of Travel.’ UDAN, a transformative initiative envisioned by Hon’ble Prime Minister Narendra Modi Ji, has revolutionized air travel, making it more accessible to the middle-class. UDAN is more than just a transportation initiative; it is about bringing aspirations and opportunities closer to people. Having already enabled 1.5 crore passengers to experience affordable air travel, our target is to extend this benefit to 4 crore more in the next decade.”

So far, the scheme has operationalized 619 routes and connected 88 airports across the country. Building on this success, a revamped UDAN initiative will be launched to further enhance regional connectivity, adding 120 new destinations. Additionally, the scheme will focus on supporting helipads and smaller airports in remote, hilly, and aspirational districts, including the North Eastern region.

The number of air passengers annually has surpassed 350 million, positioning India as the third-largest aviation market globally. Over the past ten years, domestic air passenger traffic has been growing at an annual rate of 10-12%, and the number of airports has more than doubled to 159. And we are committed to developing 50 more airports in the next 5 years. To cater to rising passenger demand in the eastern region, Greenfield airports will be facilitated in Bihar to meet the future needs of the State. These will be in addition to the expansion of the capacity of Patna airport and a brownfield airport at Bihta.

The finance minister in her address also underscored the government’s focus on upgrading air cargo infrastructure. India’s air cargo sector is growing at over 10% annually, with airport cargo handling capacity reaching 8.0 million MT in FY24. There is a special focus on air cargo warehousing, particularly for perishables, opening up greater market opportunities for Indian producers and enhancing both exports and domestic trade efficiency. Streamlining cargo screening and customs protocols will enhance efficiency and promote ease of doing business in the sector.