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.

Related Stories

Gold Stories

Next Story
Real Estate

L&T Wins Mega Order for India’s Largest NVIDIA B300 AI Factory

Larsen & Toubro (L&T), through Vyoma.AI’s AI infrastructure subsidiary LTN Compute, has secured a mega order to develop what the company describes as India’s largest single-cluster AI infrastructure facility. The NVIDIA B300 AI Factory will support US-based AI cloud company Together AI’s platform for large-scale inference, fine-tuning and training workloads.The integrated AI Factory will be hosted at Vyoma.AI’s Chennai data centre campus and will have a capacity of 10,000 NVIDIA B300 GPUs. The platform will combine hyperscale data centre infrastructure, accelerated computing, h..

Next Story
Infrastructure Urban

Autodesk Elevates Nikhil Bagalkotkar to Lead AEC in India, SAARC

Autodesk has elevated Nikhil Bagalkotkar as Head – Architecture, Engineering and Construction (AEC), India and SAARC, with immediate effect.In his new role, Bagalkotkar will lead Autodesk's AEC business strategy across the region and drive adoption of the company's Design and Make platform. He will also focus on promoting digital design and construction technologies to help customers accelerate innovation and deliver more sustainable and resilient infrastructure.Bagalkotkar will be responsible for expanding Autodesk's AEC business, strengthening customer and partner engagement, and accelerat..

Next Story
Real Estate

Listed Developers' Pre-Sales Seen Rising 22.3 Per Cent in FY27

India's leading listed residential developers are expected to sustain strong sales momentum in FY27, with combined pre-sales of 11 major players projected to rise 22.3 per cent year-on-year, according to an analysis by ANAROCK Research & Advisory.Combined pre-sales of the developers are estimated to increase from Rs 1.49 trillion in FY26 to Rs 1.82 lakh crore in FY27. ANAROCK attributed the growth to sustained end-user demand, new project launches and strong execution despite higher property prices, construction costs and global uncertainties.Dr Prashant Thakur, Executive Director and Head..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement