“The Union Budget 2026–27 is a timely and decisive intervention for India’s civil aviation ecosystem. The exemption of basic customs duty on aviation components, parts, and raw materials directly addresses long-standing cost and supply-chain constraints that have limited scale, localisation, and global competitiveness.
As highlighted by Hon’ble Union Finance Minister Nirmala Sitharaman, the proposed duty exemptions for components used in civilian training and other aircraft, as well as for raw materials supporting MRO requirements in the defence sector, will significantly strengthen domestic manufacturing and maintenance capabilities.
These measures will accelerate aircraft manufacturing, expand MRO infrastructure, create skilled employment, and reinforce India’s emergence as a dependable regional aviation and aerospace hub. The Budget’s broader emphasis on capital investment, including customs duty exemptions on capital goods across key sectors, along with the proposal to institutionalise services-sector policy through a high-powered committee assessing the impact of AI on jobs, reflects a forward-looking approach to competitiveness and workforce readiness.
Together, these steps strongly advance the objectives of Make in India and Atmanirbhar Bharat by enabling the aviation sector to build resilience, deepen value addition, and move up the global value chain.”
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