India Budget 2024: Incentives announced to boost MRO activities in aviation, shipping sectors

Finance Minister Nirmala Sitharaman announced incentives to enhance maintenance, repair and overhaul activities in the aviation and shipping sectors during the budget speech, aiming to support the growth of India's domestic aviation market. The government plans to extend the period for export of goods imported for repairs to one year and increase the time-limit for re-import of goods for repairs under warranty to five years.. Additionally, a 5 per cent uniform Integrated Goods and Services Tax (IGST) rate on all aircraft and aircraft engine parts has been implemented to streamline taxation in the industry.