India prolongs UDAN funding to five years, boosting regional airline viability

The Indian government announced that financial support for airlines under the UDAN regional connectivity scheme will be extended from three to five years. The phased, tapered funding model will start at 100 % in the first two years, then drop to 75 %, 50 % and 25 % over the remaining three years. The scheme, launched in 2016 and recently revamped for another decade by Prime Minister Narendra Modi in Jodhpur, is backed by a Rs 29,000‑crore outlay for the next ten years, aiming to create a robust civil‑aviation ecosystem.

Union Civil Aviation Minister Ram Mohan Naidu also highlighted that, despite global geopolitical tensions, India recorded its highest‑ever monthly domestic passenger traffic in May 2026, with more than 1.5 crorelevant (1.5 crore) flyers – about five lakh passengers per day. He noted the rapid expansion of airports, from 65 in 2001 to 90 added in the last twelve years, and the revival of 55 unutilised airstrips. Success stories such as Darbhanga, Kishangarh, Pushkar and Ajmer illustrate the scheme’s impact on regional connectivity and economic activity.