Govt's Commitment To Aviation Infra Development Takes Flight In Interim Budget
In her interim budget speech for 2024-25, Finance Minister Nirmala Sitharaman highlighted the government's commitment to further developing airport infrastructure in India.
“Expansion of existing airports and development of new airports will continue expeditiously. The aviation sector has been galvanised in the past ten years. The number of airports has doubled to 149. The rollout of air connectivity to Tier 2 and 3 cities under Ude Desh ka Aam Naagrik (UDAN) scheme has been widespread as 517 new routes are carrying 1.3 crore passengers," stated Sitharaman in her address.
Udan, a regional connectivity scheme was launched by the government in October 2016 and has successfully catered towards connectivity to remote parts of the nation.
“The boost in the aviation sector with additional routes being created will certainly aid development and tourism in otherwise remote locations now accessible with newer routes,” said Moin Ladha, Partner at Khaitan and Co.
The Udan scheme has had a significant impact, with 517 new routes facilitating the travel of 1.3 crore passengers.
“The far-reaching impact of the Udan scheme is evident in the proliferation of 517 new routes, facilitating the seamless travel of 1.3 crore passengers. We will continue to partner with India in this journey of progress that continues to lay high priority on developing the aviation infrastructure to realise its potential," stated Ashish Saraf, VP and Country Director, Thales India.
Furthermore, to boost domestic tourism, the government has focused on promoting island tourism and improving connectivity.
"The dedicated efforts towards developing aviation and rail infrastructure, especially through the commendable initiatives of Udan and the PM Gati Shakti scheme, encouraging States to promote iconic tourist centres by providing interest-free loans are noteworthy with a special focus on developing island tourism and fortifying port connectivity, including Lakshadweep," said Nishant Pitti, CEO and Co-founder, EaseMyTrip.
Additionally, the announcement of Rs. 1 lakh crore corpus for research and innovation, along with interest-free loans, can be construed as a favourable step towards private sector investment, especially for the aviation industry.
"We are eager to contribute to the growth of the aviation sector and work closely with the government, Airports Authority of India and private sector partners to bring world-class ATC Control Towers and High Vision Cabins to India," stated Unni Bhaskar, Managing Director of Uno Technology.
Companies and organisations are eyeing the detailed budget where the agenda can be set for this industry, "We look forward to the detailed roadmap in the upcoming full Budget to further understand the government's vision for 'Viksit Bharat' and its implications for the industry,” added Bhaskar.
This allocation of funds to support the private sector for R&D also opens avenues for the defence sector, "The government's announcement of providing long-term loans at negligible or zero interest emerges as a vital imperative. The development of cutting-edge technologies for defence demands substantial capital investment and endures a protracted gestation period," said Rohit Chouhan, Chief Executive Officer, Nabhdrishti Aerospace.
"Furthermore, the initiative holds the potential to spur economic growth by creating employment opportunities within the defence sector. As India strives for "Atma Nirbharta" in defence capabilities, strategic investment in innovative projects becomes paramount. In the face of global uncertainties, a robust, self-reliant defence sector is pivotal for national security," he added.
