India, the world's fastest-growing aviation market, will invest $3.06 billion as part of a programme to increase air transport to under-served regions in the country, it said on Wednesday.

The country is relying on a boom in aviation to boost job creation and drive economic growth, but it has encountered challenges, including inadequate infrastructure and taxation issues.  

The programme named Ude Desh ka Aam Nagrik, or "Let the common citizen of the country fly", was first launched in 2016.

Under a modified version of the scheme announced on Wednesday, India will develop 100 more airports and provide more subsidies to airlines to operate routes that would otherwise be unviable.

It will run for 10 years from fiscal 2026-27 to fiscal 2035-36 and proposes providing subsidies amounting to $1.07 billion to airlines, a government statement said.

The government of Prime Minister Narendra Modi has said it aims to increase the number of airports to 350-400 by 2047 from 163 in 2025.  

Source: Reuters