Make-in-India boost for aviation sector

A budget proposal to scrap basic customs duty on imported civilian aircraft components is set to boost the aviation sector.

- Dipali Banka & Abhishek Law

Duty relief on imports of aircraft components supports India's push to become a global hub for aircraft manufacturing.

“[ propose to exempt basic customs duty on components and parts required for manufacture of civilian, training and other aircraft,” finance minister Nirmala Sitharaman said in her budget speech on Sunday.

Customs duty on aircraft components range from 2.5% to 15%. Some have zero duty. Experts said the duty exemption could lead manufacturers to expand and new companies to enter the space.

Adani Group and Brazil's Embraer are in talks to manufacture commercial aircraft in India. Embraer will import aircraft components, it said when it signed a partnership agreement with Adani last month.