Archive · 13 Jan 2026
Budget 2026: Aviation Sector Focuses on Execution
The aviation sector in India is waiting for Budget 2026 to see how the government will help with airport infrastructure and regional connectivity.
The government has been building more airports and wants to have 350–400 by 2047.
The sector has been growing, with more jobs and economic output, but airlines are still facing financial stress.
The budget is expected to focus on making sure existing plans, like the UDAN scheme for regional connectivity, are carried out well.
New airports like Navi Mumbai and Noida International are important for easing congestion, but some projects are behind schedule.
The budget is also likely to support tourism and medical tourism to boost international connectivity.
The aviation sector expects Budget 2026 to focus on execution rather than new announcements, prioritizing regional connectivity and airport capacity expansion.
India aims to increase the number of airports from 163 in 2025 to 350–400 by 2047.
The sector directly employs 369,700 people and generates $5.6 billion in economic output, supporting over 7.7 million jobs including indirect employment.
Budget 2025 allocated Rs 2,400.31 crore to the Ministry of Civil Aviation, a 10% decline from the previous year, with Rs 540 crore for the modified UDAN scheme.
Financial stress persists in the aviation industry, with projected net losses of Rs 9,500–10,500 crore in FY26, driven by moderating passenger growth and rising costs.
- Who
- Indian Aviation Sector and Government
- What
- Focus on execution and infrastructure in Budget 2026
- When
- Budget 2026–27
- Where
- India
- Why
- To address infrastructure constraints and support sector growth
- Domestic Air Passenger Traffic (FY26, April-October 2025)
- 944.5 lakh
- Number of Airports in India (2014)
- 74
- Number of Airports in India (2025)
- 163
- Target Number of Airports by 2047
- 350–400
- Direct Employment in Aviation Sector
- 369,700
- Economic Output from Aviation Sector
- $5.6 billion
- Total Jobs Supported by Aviation Sector (Direct and Indirect)
- 7.7 million
- Budget Allocation for Ministry of Civil Aviation (2025)
- Rs 2,400.31 crore
- Funding for Modified UDAN Scheme (2025)
- Rs 540 crore
- Passengers on UDAN Flights
- 1.56 crore
- Regional Flights Operated Nationwide
- 3.23 lakh
- Viability Gap Funding Disbursed
- Rs 4,300 crore
- Cost of Navi Mumbai International Airport
- Rs 19,650 crore
- Estimated Cost of Noida International Airport
- Rs 6,500 crore
- Projected Domestic Aviation Industry Net Losses (FY26)
- Rs 9,500–10,500 crore
- Projected Domestic Aviation Industry Net Losses (FY25)
- Rs 5,500 crore
- Passenger Traffic Growth (Last Financial Year)
- 7.6%
- Passenger Traffic (Last Financial Year)
- 16.53 crore
Sources
Central Railway passenger traffic soars in FY26, revenue touches Rs 5,881 crore till December
Central Railway Reports Rise In Passenger Traffic And Earnings, Suburban Services Lead Growth
Can Budget 2026 be ‘make or break’ for aviation? From 400 new airports to ‘Make in India’ planes—Full details inside
