India is to increase its regional airport network significantly as it seeks to bring flying within the reach of more of its 1.4 billion population.
The country’s Cabinet has approved the implementation of a major extension to its decade-long UDAN project. UDAN is an acronym whose approximate translation from Hindi is ‘Let the ordinary people fly.’ It is designed to provide inexpensive tickets across a swathe of flights and destinations – notably secondary and tertiary airports – linking them both to each other and to major hubs.
The government’s plan involves spending ₹28,840 crore ($380 million) to support affordable flying, develop 100 airports from existing unserved airstrips, and build a regional aviation ecosystem.
The extension to UDAN will run from FY 2026-27 to FY 2035-36.
By expanding access to air services, the scheme seeks to bring people and markets closer together, while reinforcing aviation as a major enabler of growth, social mobility, and national integration.
The move will be regarded favorably by aircraft OEMs and lessors hoping to cut themselves a slice of the expanding Indian aviation sector. Embraer has this year signed a series of agreements to this end.
In January, the Brazilian OEM and India’s Adani Defence & Aerospace signed an MoU to set up a final assembly line in India for the E175 jet – but 200 firm orders will be required before the project goes ahead. That number could be achieved if the E175 becomes the centerpiece of India’s long-mooted Regional Transport Aircraft project.
At present, regional carrier Star Air, with seven E175s, is the only Indian carrier operating the type.
Embraer estimates that India will need around 500 aircraft in the 80-146 seat category in the next two decades. Turboprop manufacturer ATR is also targeting the country.
“Modified UDAN has been envisioned as a further enabler for connecting Tier 2 and 3 cities to the country’s aviation map in a sustainable manner,” aviation minister Kinjarapu Ram Mohan Naidu said.
As of March 2026, 663 routes have been launched across 95 airports, heliports, and water aerodromes under UDAN, meaning that Modified UDAN will more than double the number of locations to come under the project.
The scheme has improved connectivity in remote, hilly, and island regions, supported tourism and emergency services, and encouraged the growth of regional airlines and diversified fleet operations, says the government.
“The success of UDAN over the last nine years has demonstrated the power of regional connectivity in changing lives and opening up new opportunities,” minister of state for cooperation and civil aviation Murlidhar Mohol said. “With Modified UDAN, we are building on that momentum through stronger infrastructure, enhanced viability support, and a sharper focus on last-mile connectivity.”
To support airlines and encourage sustained route development, the scheme continues the provision of Viability Gap Funding (VGF). Under Modified UDAN, ₹10,043 crore has been proposed towards VGF over a 10-year period. Airlines operating services on initially unviable routes will receive funding support for five years, with a tapered funding mechanism from year three onward, while exclusivity of operations will continue to be limited to three years.
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