Budget 2026: Aerospace and defense want tax tweaks to boost growth
India's aerospace and defense sectors are urging the government to introduce tax reforms in Budget 2026.
Their wishlist includes lower GST on premium economy tickets (down from 18% to 5%), adding turbine fuel under GST for input credits, and extending GIFT City benefits to simulators and ground equipment—all aimed at cutting costs and making the industry more competitive.
Why should you care?
If these changes go through, airlines could see lower expenses, cheaper fares, more flights, and better regional connectivity.
The defense sector is also asking for clearer rules on foreign partners in contracts and duty-free drone parts—moves that could help India ramp up its own drone exports (contributing to a ₹50,000 crore defense export target (target year not stated in source)) and speed up key projects in defense, AI, and space.
For anyone interested in tech or travel, these reforms could mean more opportunities—and maybe even cheaper tickets down the line.