“Domestic sector, air cargo infrastructure to benefit from the budget,” says Jaideep Mirchandani

The focus on RCS-UDAN and greenfield airports will help India maintain its growth momentum in the aviation sector, adds the Sky One Chairman

India, currently the third-largest domestic aviation market in the world, is experiencing substantial growth, with a 15 per cent year-on-year increase in total air passengers handled at Indian airports, reaching 37.6 crore in FY24. With the Union Government announcing a ‘modified’ UDAN -Regional Connectivity Scheme- in Saturday’s budget, industry experts believe the domestic aviation sector will benefit significantly.

“With 120 target locations and an anticipated 4 crore passengers over the next decade, the updated UDAN scheme, alongside new regional configurations, enhances the country’s connectivity beyond metros and will bring a new wave of travel. The addition of new helipads and airports in hilly and northeastern districts is set to stimulate the economies of these underserved areas through trade, tourism, and improved accessibility. The initiation of new greenfield airports in Bihar and the expansion of Patna’s airport signals a much-needed, comprehensive strategy for the development of aviation in the country,” says Jaideep Mirchandani, the group chairman of Sky One.

He says that the Economic Survey also highlights the high level of activity the aviation sector is experiencing, as the Ministry of Civil Aviation utilizes 69% of the earmarked capex for FY25, following Ports and Shipping. Another positive indicator is the strong growth of the cargo segment, with handling capacity expected to increase from 7.4 million metric tonnes in FY22 to 8 million MT in FY24.

“It is also encouraging to note that the government is addressing some of the issues related to air cargo logistics with significant decisions in this year’s budget. In her speech, the finance minister announced plans to upgrade infrastructure and warehousing for air cargo, including high-value perishables. She also mentioned that cargo screening and customs protocols will be streamlined and made more user-friendly,” he adds.

Meanwhile, Mr Mirchandani believes that while these plans and programmes provide a boost to the growth of the aviation sector, he would also like to draw the Government’s attention to the importance of Aviation Skill Development and Sustainable Aviation Fuel (SAF) to support India’s ambitious goal of becoming a global leader in aviation.