The Union Budget 2026–27 introduced targeted measures aimed at strengthening India’s aviation ecosystem, with a particular focus on rationalisation of Basic Customs Duty (BCD) and promotion of the Maintenance, Repair and Overhaul (MRO) sector. The changes are intended to reduce cost burdens on aviation stakeholders, improve ease of doing business and enhance the competitiveness of India as an aviation hub.
Key measures include customs duty relief on select aircraft components and parts, alongside continued policy support for domestic MRO operations to reduce reliance on foreign service providers. These developments are expected to incentivise localisation of maintenance services, improve turnaround times and contribute to the growth of India’s aviation infrastructure, in line with the government’s broader objective of establishing India as a global aviation and MRO hub.
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