Indian Airlines Seeks Relief Amid Rising Costs
Air India and Indigo are advising the Indian government to reduce aviation fuel taxes and certain airport charges, as the Middle East conflict
Finance Minister of India, presenting the Union Budget 2026, announced basic customs duty exemption on raw materials for the manufacturing of aircraft parts for upkeep, repair and other units in the defence sector.
Other initiatives include incentives for the indigenization of seaplane manufacturing and subsidies for seaplane flights.
The minister also announced an exemption from basic customs duty on components used in the manufacturing of civil and other aircraft.
Sitharaman said the government has chosen reform over rhetoric. She added that India will be stepping towards becoming a Viksit Bharat.
This was Sitharaman's ninth consecutive Budget, bringing her closer to former PM Morarji Desai's record of 10 budgets.
India's civil aviation, ports, and shipping sectors will experience sharp expansion by FY31, driven by growing demand, infrastructure development and policy support, the Economic Survey said, highlighting the urgent requirement for capacity additions to keep pace with traffic growth.
The Economic Survey FY26, presented on Thursday, projected passenger traffic at Indian airports to surge from 412 million in 2024-25 to 665 million by 2030-31. It said civil aviation in India is "on a continuous growth trajectory, supported by a conducive policy environment, growing demand and steady infrastructure growth."
Source: NDTV
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