Udan Scheme: An Analysis

- Rahul Purkayastha

The Ude Desh Ka Aam Nagrik Scheme, abbreviated as UDAN scheme, is a flagship scheme of the current NDA government aimed at making aviation as a means of transport more accessible to the common citizens of the country. India is the world’s third-largest market in the aviation sector and this scheme aims to fully utilise the potential of this sector as the sector is still to a certain degree, untapped and does not cater to the vast majority of Indians especially those who belong to socio-economically weaker backgrounds. One of the main ambitions of this flagship project is to connect small and tier 2 and tier 3 cities with bigger cities and metropolises through airways. The multi-sectoral effect, including the increase in revenues it is expected to bring in through tourism, industrial development and higher business potential in tier 2 and tier 3 cities and will help in greater and a more inclusive economic growth in the country.

Another intention of the government with respect to this scheme is to allow for the greater socio-economic development of areas other than the metropolitan cities, which have emerged as the main nodes of growth and economic development in the country. The tier 2 and tier 3 cities, despite having a large population have not yet been able to emerge as drivers of economic growth in the country. The scheme aims to correct that shortfall; already, 46 airports have been built in the 7-year tenure of the present government, and more airports are under construction.