India to invest $3 billion to boost aviation, plans 100 new airports

Dubai: India will invest $3.06 billion to expand its aviation ecosystem and boost regional connectivity, with plans to develop 100 new airports under a revamped scheme aimed at making air travel more accessible.

The programme — Ude Desh ka Aam Nagrik (UDAN), or “Let the common citizen of the country fly” — has received approval from the cabinet to run for 10 years from fiscal 2026-27 to fiscal 2035-36.

Crucially, the revamped programme will not only fund infrastructure but also make routes viable.

The government said the investment of $3 billion includes approximately INR 28,840 crore (total budgetary support mentioned by the ministry) and INR 10,043 crore earmarked as VGF (viability gap funding) support for airlines, Union Minister of Civil Aviation, Ram Mohan Naidu Kinjarapu explained on his X platform.

India, currently the world’s fastest-growing aviation market, is banking on a boom in air travel to drive economic growth and job creation. However, it continues to face challenges including inadequate infrastructure and taxation issues.

Announcing the decision, the Ministry of Civil Aviation said the Cabinet had cleared the next phase of the scheme to deepen regional connectivity:

The scale of the expansion is significant. Alongside the 100 new airports, the plan also includes the addition of 200 heliports, widening the reach of aviation into remote and regional areas.

Kinjarapu described the decision as a “historic” step for the sector, highlighting how the scheme has already reshaped India’s aviation landscape since its launch in 2016, “Over last 10 years, UDAN has been able to add 663 new routes, 95 new Airports… Around 1.62 crore (16.2 million) passengers have travelled…”

He added that the next phase will significantly scale up impact, “With today’s cabinet approval, another 100 airports, 200 heliports will be added… with an estimated 4 crore passengers to be benefitted… Airports are not merely the transit hubs but also the economic engines for the region…”

The government’s long-term ambition goes even further. It aims to increase the total number of airports in the country to 350-400 by 2047, up from 163 in 2025 — a target aligned with the broader economic vision under Prime Minister Narendra Modi.

With the expanded UDAN scheme, India is doubling down on aviation as a tool for inclusive growth — using connectivity to unlock regional economies while bringing air travel within reach of millions more passengers.

New investments in a nutshell