+
Budget 2024-25: Fin Minister focuses on India's MRO sector
ECONOMY & POLICY

Budget 2024-25: Fin Minister focuses on India's MRO sector

According to statements made today by Finance Minister Nirmala Sitharaman, the Union Budget 2024-25 emphasizes enhancing India?s maintenance, repair, and overhaul (MRO) capabilities for aircraft and ships, alongside continuing policy measures aimed at making India an appealing destination for aircraft leasing and finance. The minister outlined that reforms in ownership, leasing, and flagging would be implemented to bolster India?s position in the global shipping industry and stimulate employment growth. These efforts are particularly significant amidst disruptions in global shipping due to geopolitical conflicts, which have contributed to inflationary pressures.

To promote the domestic aviation and shipping MRO sectors, the finance minister announced plans to extend the duration for exporting items or parts of foreign origin imported into India for repairs. Currently, such components must be re-exported within six months of importation. The proposed extension would increase this period to one year. Additionally, the time limit for re-importing goods for repairs under warranty would be extended from three years to five years.

In alignment with the Maritime India Vision 2030, which aims to develop ship repair clusters across the country, these changes are seen as pivotal in positioning India as a hub for MRO activities. Samir Kanabar, Tax Partner at EY India, commented that extending export and re-import timelines is a crucial step towards achieving this goal and attracting international shipping and aviation entities to conduct repairs in India.

Furthermore, the finance minister highlighted plans to secure legislative approval for facilitating efficient and flexible financing options for leasing aircraft and ships, as well as pooling private equity funds through a "variable company structure".

According to statements made today by Finance Minister Nirmala Sitharaman, the Union Budget 2024-25 emphasizes enhancing India?s maintenance, repair, and overhaul (MRO) capabilities for aircraft and ships, alongside continuing policy measures aimed at making India an appealing destination for aircraft leasing and finance. The minister outlined that reforms in ownership, leasing, and flagging would be implemented to bolster India?s position in the global shipping industry and stimulate employment growth. These efforts are particularly significant amidst disruptions in global shipping due to geopolitical conflicts, which have contributed to inflationary pressures. To promote the domestic aviation and shipping MRO sectors, the finance minister announced plans to extend the duration for exporting items or parts of foreign origin imported into India for repairs. Currently, such components must be re-exported within six months of importation. The proposed extension would increase this period to one year. Additionally, the time limit for re-importing goods for repairs under warranty would be extended from three years to five years. In alignment with the Maritime India Vision 2030, which aims to develop ship repair clusters across the country, these changes are seen as pivotal in positioning India as a hub for MRO activities. Samir Kanabar, Tax Partner at EY India, commented that extending export and re-import timelines is a crucial step towards achieving this goal and attracting international shipping and aviation entities to conduct repairs in India. Furthermore, the finance minister highlighted plans to secure legislative approval for facilitating efficient and flexible financing options for leasing aircraft and ships, as well as pooling private equity funds through a variable company structure.

Next Story
Infrastructure Urban

CJ Logistics’ Global CEO visits India to align growth strategy

Jonathan Song, newly appointed CEO of the Global Business Division at South Korea-based CJ Logistics, concluded a strategic three-day visit to India from July 29 to 31, reinforcing the company’s long-term commitment to the market through its subsidiary, CJ Darcl Logistics Ltd. Mr Song held high-level discussions with the CJ Darcl leadership and key customers to understand India’s evolving logistics needs, identify synergy areas, and enhance business alignment. His visit highlighted the strategic significance of India in CJ Logistics’ global network, especially amid the country’s g..

Next Story
Real Estate

Max Towers secures five star rating in safety audit by British Council

Max Estates, a leading NCR-based real estate developer, has achieved a five star rating in its first attempt at the British Safety Council’s ‘Five Star Occupational Health and Safety’ Audit for Max Towers, its premium commercial office project in Noida. The grading reflects the organisation’s commitment to the continual improvement of its occupational health and safety systems. The comprehensive audit covered documentation, interviews with senior management and employees, stakeholder feedback, and rigorous sampling of on-ground activities. It assessed performance against best prac..

Next Story
Real Estate

India’s Tier 2 & 3 Cities: The Next Growth Frontier for Real Estate

Introduction India’s metropolitan cities have long dominated the real estate landscape, shaping both market trends and public discourse, but the narrative is shifting towards India’s tier 2 and 3 cities. Beyond the metro cities, Tier 2 and Tier 3 cities such as Indore, Ahmedabad, Chandigarh, Jaipur, Coimbatore, Lucknow, Bhubaneswar, Kochi, Surat, Guwahati, and many others are emerging as vibrant real estate hubs. This growth is driven by impetus from rapid urbanisation, logistics corridors like the Delhi Mumbai Industrial Corridor, IT/ITeS investment zones, emergence of global capabil..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?