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Ankur Kanaglekar, Thales India Vice President, on Thursday, hailed the Union Budget 2026 as "growth-oriented and Atmanirbhar Bharat supporting".
He highlighted the support provided for the growth of the civil aviation industry in the Budget, citing exemptions on import duties for raw materials used in aircraft manufacturing. "The 2026 budget is a very growth-oriented and 'Atmnirbhar Bharat' supporting budget. I say that because there is a significant effort made to support the civil aviation growth. For example, there are exemptions on the basic import duties that have been announced for raw material which are used in the MROs (Maintenance, Repair & Overhaul) as well as the components that are used for aircraft manufacturing," Kanaglekar told ANI here. The Union Budget 2026, in a significant policy push to India's aviation manufacturing ecosystem for strong industry endorsement, removed basic customs duty (BCD) on aircraft components and parts, aiming to boost India's aviation manufacturing ecosystem and reduce import dependence. Boeing welcomed the government's decision to remove the 7.5%-15% basic customs duty on components and parts used in the manufacture of civilian aircraft, calling it a transformative step for the sector. This move is expected to reduce manufacturing costs by 5-7% and support local players such as Hindustan Aeronautics Ltd (HAL) and MRO providers. Speaking to ANI, a Boeing official said, "By exempting basic customs duty on raw materials and components, the government has lowered entry barriers and reduced costs for manufacturers and suppliers and a long standing industry demand and directly reduced the cost of aircraft maintenance in India." Boeing India welcomed the move, citing reduced maintenance costs and accelerated industrial growth. "This reform strengthens the foundation for domestic production, deepens the aerospace supply chain, makes Indian Maintenance, Repair and Overhaul (MROs) more competitive with global hubs, and accelerates the Make in India vision of establishing India as a leader in aviation manufacturing and services," he added. (ANI)
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