Stop the flights of fancy
There are better uses for money govt plans to spend on UDAN Alok Tiwari There is little doubt that India’s aviation sector is booming. FY 2025 saw nearly four crore people taking to the skies. The market is growing at over 8% each year, more than double the global average of about 3.5%. India’s airlines have about 1500 airliners on order. The sector contributes 1.5% to India’s GDP and employs more than 75 lakh people. It would, then, seem odd to trash a scheme designed to boost this sector. The reference here is to Ude Desh ka Aam Nagarik (UDAN) scheme, now in its fifth iteration, that has just got an allocation of Rs 28,800 crore from the central government, albeit to be spent over the next ten years. The scheme specifically aims to open newer routes for aviation sector by subsidising the tickets to an extent. These routes must link to smaller towns and cities or relatively remote and underserved areas like the northeast. In its latest avatar, it also aims to provide funding for...