NEW DELHI. Union Civil Aviation Minister Ram Mohan Naidu on Saturday said the civil aviation sector has emerged as one of the major beneficiaries of the Union Budget 2026–27, with a strong focus on building a domestic aircraft manufacturing ecosystem. He said the Budget provides a clear long-term roadmap to strengthen India’s aviation capabilities in line with the government’s vision of Atmanirbharta.
Highlighting key measures, the Minister said the exemption of basic customs duty on parts and components used in civilian and trainer aircraft will address existing manufacturing bottlenecks and improve aircraft availability. He noted that enhanced domestic manufacturing is essential to bridge the connectivity gap, as the country’s growing airport network requires a larger and more affordable aircraft fleet.
Naidu also pointed to rising global interest in India’s aviation sector, citing partnerships such as Embraer’s collaboration with Adani Aerospace and Defence and a proposed tie-up between Russia and Hindustan Aeronautics Limited. The Budget further proposes duty exemptions on raw materials for aircraft MRO in the defence sector and a one-time concessional duty measure to facilitate SEZ sales to the domestic market, aimed at accelerating growth across civil and defence aviation.
