Air connectivity improved considerably with new airports, UDAN: Eco Survey

Air connectivity in the country has improved considerably with new airports and regional air connectivity scheme, the Economic Survey said on Friday and highlighted that airport developers and operators have achieved 91 per cent of the Rs 91,000-crore capital expenditure envisaged for the FY20-FY25 period.

"India is the fastest-growing aviation market globally. To accommodate the substantial growth in air traffic, Indian airlines have placed amongst the largest orders for aircraft globally," the Survey for 2024-25 tabled in the Parliament said. 

 

Domestic airlines have ordered more than 1,700 planes as they look to expand their networks amid rising air traffic demand.

In the sphere of the Maintenance, Repair, and Overhaul (MRO) industry, the Survey said the government is encouraging original equipment manufacturers to establish facilities in India and has introduced policies to align the sector with global standards.

"New airports and improved regional connectivity under the Ude Desh ka Aam Naagrik (UDAN) scheme have improved air connectivity considerably," it added.

Under UDAN, 619 routes connecting 88 airports, including two water aerodromes and 13 heliports, have been operationalised so far.

The airport's cargo handling capacity has been gradually increasing, reaching 8 million MT in FY24.

"Airport operators and developers, including the Airports Authority of India, are pursuing a capital expenditure plan exceeding Rs 91,000 crore from FY20 to FY25.

"About 91 per cent of this has been achieved by November 2024," the survey said.

It also mentioned about the drones segment, aircraft leasing entities in the GIFT City and rationalisation of GST on imported aircraft parts and tools.

As of October 31, 2024, India has seen a notable rise in drone activities, with 140 remote pilot training organisations, 18,862 remote pilot certificates issued, 26,659 registered drones, and 82 approved drone models.

"About Rs 60.6 crore have been disbursed under the PLI (Production Linked Incentive) scheme to support drone manufacturing," the survey said.

Further, it said the PM Gati Shakti initiative aims to create a seamless multimodal connectivity network across the country. Under this initiative, the aviation sector is being integrated with other modes of transport, such as railways, roads, and waterways.

"As the electoral process settled, capital expenditure saw an uptick in July-November 2024. Capex in infrastructure sectors is expected to gain further momentum in the remaining months of the current fiscal.

"On an average, ministries related to infrastructure sectors utilised 60 per cent of the budgeted capex during April to November 2024. This compares favourably with the progress achieved in the same period in FY20 when the 17th Lok Sabha elections were held," the survey said.