Published 12:16 IST, February 1st 2025
Union Budget 2025: 120 New Destinations Under The UDAN To Benefit 15 Million Middle-Class Travellers
To address this, the government has set a target of 200 operational airports by 2025, with an investment of ₹92,000 crore for greenfield and brownfield airport

As 2024 marked a turning point for India’s aviation sector, witnessing unprecedented growth, major policy changes, and infrastructure expansion. Finance Minister Nirmala Sitharaman in the Union Budget 2025 announced that 120 new destinations will be added under the UDAN (Ude Desh ka Aam Naagrik) scheme, with a focus on hilly regions and the North-East. Since its launch, the UDAN scheme has benefited 15 million middle-class travellers, making affordable air travel a reality.
With record-breaking domestic passenger traffic, government initiatives, and regulatory advancements, the industry is set for further transformation in 2025.
India’s domestic passenger traffic soared to an all-time high in November 2024, reflecting growing demand for air travel. To further improve connectivity, Finance Minister Nirmala Sitharaman announced that 120 new destinations will be added under the UDAN
Boost to Aviation & MRO Sector
To strengthen the Maintenance, Repair, and Overhaul (MRO) sector, the government slashed IGST on aircraft parts and components from 18% to 5%, significantly reducing import costs and boosting domestic repair facilities. Additionally, new seaplane operation guidelines were introduced to further regional connectivity and encourage alternative transport modes.
Urban Air Mobility & Drone Advancements
The Directorate General of Civil Aviation (DGCA) has made strides in Urban Air Mobility (UAM) by introducing airworthiness criteria for Vertical Take-Off and Landing (VTOL) aircraft and plans for vertiports to integrate these new-age vehicles into urban environments. Additionally, DGCA is working on certifying Beyond-Visual-Line-of-Sight (BVLOS) drones, a move that will revolutionize last-mile delivery and logistics.
Aiming for 200 Airports by 2025
Despite remarkable growth, overcrowding at airports remains a challenge. To address this, the government has set a target of 200 operational airports by 2025, with an investment of ₹92,000 crore for greenfield and brownfield airport projects. However, speedy execution of these projects will be crucial for sustainable industry growth, alongside policies ensuring smooth land acquisition while balancing environmental concerns.
Pilot Training & Skill Development
Recognizing the need for a skilled aviation workforce, the Airports Authority of India (AAI) has allocated 15 Flying Training Organization (FTO) slots across 10 airports, with 5 already operational. This initiative will address pilot shortages and enhance training infrastructure for future aviation professionals.
With massive passenger growth, improved connectivity, and advancements in air mobility, India’s aviation sector is on a fast track to modernization. While policy reforms and infrastructure expansion lay the foundation for future success, efficient implementation and sustainable development will be key to maintaining momentum in 2025 and beyond.
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Updated 12:16 IST, February 1st 2025