Content:

1. UDAN Scheme
2. 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.