Ten Years of UDAN

October 24, 2026

UDAN completes ten years in 2026. Over the past decade, it has expanded India’s regional aviation network, connecting unserved & underserved regions and improving access to air travel. Regional connectivity has supported tourism, medical access, agricultural trade and local employment, with airports such as Tezu, Deoghar and Kishangarh illustrating its impact. The launch of Modified UDAN marks the next phase of the scheme. It focuses on strengthening aviation infrastructure, ensuring operational sustainability and expanding regional air connectivity. ir connectivity plays an important role in regional development. It facilitates access to markets, supports tourism and expands economic opportunities. However, connecting remote and underserved areas remains important for ensuring wider access to air travel. Recognising this need, the National Civil Aviation Policy 2016 prioritised affordable regional connectivity through financial support and infrastructure development. n line with this objective, the Regional Connectivity Scheme (RCS), also known as UDAN (Ude Desh ka Aam Nagrik), was launched on 21 October 2016. The scheme anchors its ambition on a simple yet transformative premise: making affordable yet economically viable and profitable air travel on regional routes. As UDAN completes ten years, it has expanded regional air connectivity and improved access to air travel for citizens by connecting unserved and underserved airports. A recap of the past decade reflects the rapid expansion of India’s civil aviation footprint. India is now the world’s third-largest domestic aviation market, with operational airports increasing from 74 in 2014 to 166 till date. At the heart of this, transformation lies the UDAN scheme. Building on this progress, the next phase of UDAN was launched on 4 July 2026. The scheme now places greater emphasis on CentreState/UTs partnerships. It will be complemented by a Challenge Mode Portal for Aerodrome Development dedicated to identifying airstrips and helipads. Together, these measures will further expand regional aviation infrastructure. UDAN entered its operational stage with the inauguration of the first RCS-UDAN flight from Shimla to Delhi in April 2017. Since then, the scheme has expanded regional air connectivity. The scheme uses market-based selection, airfare caps, concessions, and Viability Gap Funding (VGF) to encourage airline participation. As of 15 October 2026, Rs 5091.23 crore has been disbursed under VGF. Alongside expansion of civil aviation, sectoral jobs have grown from around 3 million in 2014 to nearly 7.7 million in 2026. Additionally, it has the potential to reach 25 million by 2040. Due to the difficult hilly terrain, the north-eastern states remain under-connected, which makes strengthening air connectivity an important development priority. Since its inception, RCS-UDAN has released multiple versions of the scheme. Building on the achievements under it, the next phase of UDAN Scheme was formally launched on 4 July 2026. The scheme will be implemented in ten years, from FY 2026-27 to FY 203536, with a total outlay of Rs 28,840 crore. The focus is now on building an ecosystem towards facilitating Made in India Civil aircraft.