Content:
- UDAN Scheme
- India’s Triumph in Combating Poverty
UDAN Scheme
Introduction
- UDAN (“Ude Desh ka Aam Nagrik”) launched on 21 October 2016 under National Civil Aviation Policy (NCAP) 2016.
- Aims to democratize air travel by making it affordable and accessible.
- Implemented by the Ministry of Civil Aviation.
- First UDAN flight: Shimla to Delhi, on 27 April 2017.
Relevance :GS 2(Schemes) , GS 3(Infrastructure)
Achievements
- 625 UDAN routes operationalized connecting 90 airports (including 2 water aerodromes and 15 heliports).
- Over 1.49 crore passengers benefitted through affordable air travel.
- Airport network expanded from 74 airports (2014) to 159 airports (2024).
- ₹4,023.37 crore disbursed as Viability Gap Funding (VGF) to support airlines.
- Boosted regional tourism, healthcare access, trade, and economic growth in Tier-2 and Tier-3 cities.
Key Components
- Viability Gap Funding (VGF): Financial assistance to airlines to maintain affordable fares.
- Airfare Caps: Upper limits on ticket pricing to ensure affordability.
- Collaborative Governance: Centre, States, AAI, and private operators working together.
- Stakeholder Incentives:
- Airport Operators: Waiver of landing, parking charges, TNLC exemption, reduced RNFC.
- Central Government: Excise duty on ATF capped at 2% for 3 years; code-sharing encouraged.
- State Governments: VAT on ATF reduced to 1% or less; provision of essential services at lower cost.
Evolution of UDAN Scheme
- UDAN 1.0 (2017):
- 128 routes awarded to 5 airlines.
- Connected 70 airports, including 36 new ones.
- UDAN 2.0 (2018):
- Included 73 underserved/unserved airports.
- Added heliports into the network.
- UDAN 3.0 (2019):
- Launched Tourism Routes and Seaplane operations.
- Focused on North-East connectivity.
- UDAN 4.0 (2020):
- Special focus on hilly areas, NE states, and island territories.
- Increased emphasis on helicopter and seaplane services.
Key Innovations and Future Plans
- UDAN Yatri Cafes: Affordable food outlets at airports (e.g., Kolkata, Chennai).
- Seaplane Operations: New guidelines released; Round 5.5 bids invited for 50+ water bodies.
- Revamped UDAN Initiative:
- Plan to add 120 new destinations.
- Aim to serve 4 crore more passengers over the next decade.
- Focus on remote, hilly, aspirational districts.
- Krishi UDAN Scheme:
- Supports farmers by providing air logistics for agri-produce.
- Covers 58 airports (25 priority airports + 33 others).
- Airport Infrastructure Development:
- 50 new airports planned over 5 years (e.g., new airports in Bihar, expansion of Patna Airport).
Conclusion
- UDAN is a transformative movement, not just a policy.
- Successfully connected Bharat and India through affordable air travel.
- Boosted local economies, tourism, trade, and employment.
- Symbolizes inclusive growth, visionary governance, and India’s march towards becoming a global aviation hub.
India’s Triumph in Combating Poverty
Introduction
- India lifted 171 million people out of extreme poverty over the last decade.
- Extreme poverty rate fell from 16.2% (2011-12) to 2.3% (2022-23).
- Recognized by the World Bank’s Spring 2025 Poverty and Equity Brief.
- Achievement driven by targeted welfare schemes, economic reforms, and improved access to services.
Relevance : GS 2(Poverty, Schemes, Governance)
About World Bank’s Poverty and Equity Briefs (PEBs)
- PEBs provide snapshots of poverty, shared prosperity, and inequality for 100+ countries.
- Published twice a year during World Bank and IMF meetings.
- Indicators include:
- Extreme poverty ($2.15/day),
- Lower-middle-income poverty ($3.65/day),
- Upper-middle-income poverty ($6.85/day),
- Multidimensional Poverty and Gini Index for inequality.
Rural and Urban Poverty Reduction
- Rural extreme poverty: Fell from 18.4% to 2.8% (2011-12 to 2022-23).
- Urban extreme poverty: Reduced from 10.7% to 1.1%.
- Rural-urban poverty gap: Narrowed from 7.7% points to 1.7% points.
- Annual decline rate: Around 16% between 2011-12 and 2022-23.
Gains at Lower-Middle-Income Poverty Line ($3.65/day)
- Poverty rate fell from 61.8% to 28.1%.
- 378 million people lifted from poverty.
- Rural poverty: Dropped from 69% to 32.5%.
- Urban poverty: Dropped from 43.5% to 17.2%.
- Rural-urban gap: Reduced from 25% to 15% points.
- Annual decline: About 7% between 2011-12 and 2022-23.
Key States Leading Poverty Reduction
- Five states — Uttar Pradesh, Maharashtra, Bihar, West Bengal, Madhya Pradesh — had 65% of extreme poor in 2011-12.
- These states contributed to two-thirds of the overall decline by 2022-23.
Multidimensional Poverty and Revised Estimates
- MPI (Multidimensional Poverty Index) declined from 53.8% (2005-06) to 16.4% (2019-21).
- World Bank’s Multidimensional Poverty estimate at 15.5% in 2022-23.
- New revised poverty rates (after updating PPP 2021):
- Extreme poverty: Estimated at 5.3%.
- Lower-middle-income poverty: Estimated at 23.9%.
- Gini Index (income inequality): Improved from 28.8 to 25.5.
Employment Growth and Workforce Shifts
- Employment growth outpaced working-age population since 2021-22.
- Urban unemployment dropped to 6.6% in Q1 FY24/25 (lowest since 2017-18).
- Male workers moving from rural to urban areas; female employment in rural agriculture rising.
- Increase in self-employment, especially among rural women.
Conclusion
- India’s decade-long poverty reduction is one of the largest globally.
- Achievements reflect inclusive development strategies and effective governance.
- Positive trends in employment, gender participation, and inequality reduction offer a strong foundation for further progress.
