PLI push planned for small aircraft manufacturing

· Announcement likely in Budget for FY27

- YARUQHULLAH KHAN

THE CIVIL AVIATION ministry is working on a production linked incentive (PLI) scheme estimated at about ₹15,000 crore to support domestic manufacturing of small aircraft.

Sources said that an announcement to this effect is likely in the upcoming Union Budget.

The proposed scheme is being structured for a six-year period beginning 2026-27 and is expected to be in the range of ₹12,000 crore to ₹15,000 crore.

It is aimed at encouraging the development of a full manufacturing ecosystem for small aircraft, typically defined as planes with fewer than 20 seats that operate on short-haul and regional routes, sources said.

Under the draft framework, original equipment manufacturers would qualify for incentives only if they meet strict indigenous manufacturing thresholds.