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Union Civil Aviation Minister Ram Mohan Naidu lauded the Union Budget for 2026-2027, emphasising that the civil aviation sector has emerged as a primary beneficiary of the government's latest fiscal roadmap.
Speaking on the long-term impact, the Union Minister noted that the government is working to establish a robust aircraft manufacturing ecosystem, highlighting that this budget provides a clear roadmap to achieve that vision. "I am very happy to share that in today's budget speech, which has been proposed by the finance minister, civil aviation has been a major beneficiary. One of the strongest impact areas in civil aviation is the manufacturing sector, where many other countries have taken advantage. When we want to buy these planes, we are buying them from other countries and other OEMs," Naidu said. He asserted that the focus is on 'Atmanirbharta' to bring manufacturing to the country itself. "We have been working for quite some time now to establish this network, and this budget gives a clear picture on how to do it. The customs duty exemption on parts and components used in civilian and trainer aircraft will boost the manufacturing ecosystem, which is currently a bottleneck. We have a lot of airports here today, but there is a mismatch in the connectivity because we don't have that many planes and how do we get that many planes is to improve the manufacturing in the country," said Naidu. The Union Minister further mentioned that the Brazilian aerospace giant Embraer is partnering with Adani Aerospace and Defence to manufacture aircraft within the country. He also noted that the Russian government is entering into a tie-up with Hindustan Aeronautics Limited (HAL), driven by the significant opportunities created by this year's Union Budget. "There is a great opportunity here, which is why Embraer, a Brazilian company, is tying up with Adani Aerospace and Defence to manufacture aeroplanes in the country. The Russian government is also entering into a tie-up with HAL and signing an MoU to manufacture jet and propeller aircrafts in the country..." added Naidu. Earlier on Sunday, Union Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 in Lok Sabha, her ninth consecutive Union Budget, asserting that it is driven by "Yuvashakti" and based on "three kartavyas". Within the Civil and Defence Aviation sectors, the Budget proposes to exempt basic customs duty on components and parts required for manufacturing civilian, training, and other aircraft. Additionally, basic customs duty on raw materials imported for the manufacture of aircraft parts used in Maintenance, Repair, and Overhaul (MRO) for Defence sector units will also be exempted. Moreover, a special one-time measure has also been proposed to facilitate sales from manufacturing units in Special Economic Zones (SEZs) to the Domestic Tariff Area (DTA) at concessional duty rates. (ANI)
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