India’s UDAN Regional Air Connectivity Scheme Gets 27% Budget Boost for FY27
India has increased budgetary allocation for the UDAN regional air connectivity scheme by 27% for FY27, reinforcing efforts to expand air services to underserved and remote regions.
Jishan Khan 
India’s flagship Regional Air Connectivity Scheme (UDAN) has received a significant boost in the Union Budget, with the government increasing its allocation by 27% for FY27, underscoring renewed focus on expanding air services to underserved and unserved regions across the country.
The higher allocation is aimed at supporting additional routes, sustaining airline viability gap funding, and strengthening airport and heliport infrastructure in smaller cities and remote areas. UDAN has been a cornerstone of India’s aviation growth strategy, enabling affordable air travel and improving regional economic integration.
Officials say the enhanced funding will help accelerate the rollout of new regional routes while ensuring the continuity of existing services under the scheme. Since its launch, UDAN has played a key role in connecting Tier‑II and Tier‑III cities, stimulating tourism, trade, and employment in regions previously lacking air connectivity.
Industry stakeholders view the budget increase as a positive signal for regional airlines and airport operators, many of whom rely on UDAN support to maintain commercially challenging routes. The funding is also expected to complement ongoing airport modernisation efforts and the development of new airstrips and greenfield facilities.
As India’s aviation market continues to expand rapidly, the strengthened financial backing for UDAN aligns with the government’s broader objective of inclusive growth, ensuring that the benefits of air travel extend beyond major metropolitan hubs.
