On Sunday, the Union Finance Minister announced customs duty exemptions on parts and components used in the manufacture of civil aircraft, training aircraft and other aircraft. Waiters on duty have also been allocated for the import of raw materials used in the manufacture of parts by maintenance, repair and overhaul units of the defense sector.
While the Adani group and Hindustan Aeronautics Limited have partnered with Embraer and United Aircraft Corporation respectively to produce aircraft in the country, the Safran group is developing an MRO for M88 engines that power the Indian Air Force’s Rafale aircraft.
“The 2026 Budget reinforces a growth-oriented manufacturing direction and India’s ambition to build globally competitive industrial ecosystems,” said Jurgen Westermeier, Chairman of FICCI’s National Civil Aviation Commission and President of Airbus South Asia.
“Looking ahead, we request the government to consider a production-linked incentive for aerospace manufacturing, which will enable Indian companies to embed themselves more deeply into the global aerospace manufacturing value chain,” he added.
Published on February 2, 2026
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