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Cut to boost defence aircraft ecosystem
Financial Express Chennai
|February 03, 2026
WITH AN AIM to strengthen India’s self-reliance in defence aviation, Finance Minister Nirmala Sitharaman has announced a full exemption from basic customs duty on raw materials and components used for maintenance, repair, and overhaul (MRO) of aircraft by defence sector units.
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“It is proposed to exempt basic customs duty on raw materials imported for the manufacture of parts of aircraft to be used in maintenance, repair, or overhaul requirements by Units in the Defence sector,” Sitharaman said in her Budget speech for FY27.
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