With the rolling in of the new Union Budget 2025, announced on 1st February by FM Nirmala Sitharaman, the aviation and tourism industry in India is expected to grow at a rapid speed together! As the first step to the growth of the tourism sector in India depends on the advancement of the Indian aviation industry, you can expect to see a quick boost for civil aviation under the Aviation Budget 2025.
The boost comes with offering efficient and affordable flying services for the middle-class population and an increase in the number of Airports. Do you think the fall in the Aviation Budget 2025 will mark the fall or rise of the aviation industry in India? Let us find out together!
What is the Aviation Budget 2025?
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The Union Budget 2025 has declared that the Aviation Budget for 2025 will be INR 2,400.31 crore, a 10% cut from the previous 2024 Indian Union Budget of INR 2,658.68 crore of the past year. Similarly, the union budget 2025-26 allotted for the UDAN scheme is INR 540 crore, a 30% decrease from the 2024-25 budget of INR 800 crore.
On the other hand, tourism gets Rs.20,000 crore boost under India’s Union Budget FY 2025-26! Don’t you think India’s tourism sector get major boost as compared to the Aviation Budget 2025? Probably, but this does not deter the ever-advancing aviation industry! Religious and medical tourism will grow in India as per the new Budget, which will indirectly improve the air travel experience as well.
Know more about the benefits for the tourism industry by reading: How Will the Union Budget 2025 Impact Indian Tourism & Travel?
New Goals Under UDAN
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The Ude Desk ke Aam Nagrik Scheme, called UDAN, was launched in 2016 and boosted affordable domestic tourism experiences in India. Over the years, it has helped over 1.5 crore million-class passengers access cheap flight bookings! Under the scheme, about 619 destinations were connected, and 88 new Airports were constructed.
The Aviation Budget 2025 has modified UDAN Scheme to have 120 new destinations! The finance minister believes this modification will increase middle-class passenger travel to 4 crores within 10 years. The Indian Union Budget also aims to develop the infrastructure of 50 Tier-2 and Tier-3 destinations in India and declare India a spiritual destination, a win-win opportunity for Indian Airlines, as the number of tourists will increase soon! Explore the new India with personalized and customized holiday tour packages for a trip for your dreams.
Building More Airports in India
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An increase in connecting destinations for airlines also means an increase in Airports! The new UDAN scheme will support the construction of smaller Airports in hilly and remote locations, including North East India and helipads. Airlines can expect a boost in services with the increase of greenfield airports in Bihar and the capacity expansion of Patna Airport under the UDAN scheme, one of the key developments for India’s Travel & Tourism Industry. The airport count is estimated to increase by 50 by 2030.
India currently has the third-largest aviation market in the world, with the annual passenger rate surpassing 350 million! The passenger increase has been around 10% to 12% annually over the past 10 years and is expected to grow, considering the union budget 2025 highlights. It’s obvious that the hospitality sector, along with the aviation industry, will soar to unbelievable heights in the coming years! Book all-inclusive India tour packages in advance to explore in 2025.
Click here to find hotel bookings at the lowest prices once in India! Also, read: The Impact of Budget 2025 on Luxury Hotels & High-End Travel.
Do you think the Indian Airlines soar or crash with the Union budget 2025: tourism highlights & updates? Let us know if you think the tourism-focused measured will help better air travel in the comments below! Since flying is now cheaper for Indians, why not take a trip soon? Apply for online visa services for 180+ countries and break away from your tedious routine!
FAQs- Aviation Budget 2025
Will India’s aviation sector fly high?
India’s aviation sector will fly higher than it ever has with the reformed UDAN scheme and plans to expand airport construction all over India under the Union Budget.
How will Union Budget 2025 boost India’s Aviation Sector?
The Aviation budget for 2025 is Rs.2,400.31 crore, which will go to expanding the airline networks by setting up airports in hilly and remote areas and further reducing flight ticket prices, making travel more affordable for the middle class.
How will India’s Union Budget 2025 Boosts Tourism Growth?
India’s Union Budget will boost tourism by developing 50 new attractions while collaborating with different states. You can also expect an increase in affordable homestays and an increase in the quality of medical services provided in India, with a huge opening for employment in the tourism industry.
What is the current scenario of tourism and travel industry in India?
The travel industry in India is currently thriving and is expected to improve with the new Union Budget.
What is the budget allocation for tourism in India?
About INR 2,541.06 crore has been allotted towards tourism in India in 2025.
Who introduced the union budget in India?
R K Shanmukham Chetty gets the credit for introducing the union budget in India after independence. The 2025 budget was given by Finance Minister, Nirmala Sitharaman.
What is the Budget of tourism in India?
The Budget for tourism in India is Rs.2,541.06 crore for 2025-26.
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