Industry leaders on Sunday said the Nirmala Sitharaman’s ninth straight budget stresses fiscal discipline. (Representative image).
The Union Budget for 2026–27 has struck a positive chord with India’s aviation industry, with top executives saying it offers clarity and confidence at a time of global economic flux.
Industry leaders on Sunday said the Nirmala Sitharaman’s ninth straight budget stresses fiscal discipline, infrastructure-led growth and long-term capacity-building reViksit Bharat,” Dubeshift away from short-term populism towards sustainable expansion.
Aloke Singh, Managing Director of Air India Express, said the Budget sends “a strong and reassuring signal” for India’s long-term growth trajectory.
Anchored in sustained capital expenditure, the proposals provide a structural foundation for tourism-led development, which in turn supports the expansion of civil aviation.
“The Union Budget 2026-27 sends a strong and reassuring signal for India's long-term growth, anchored in fiscal discipline and a sustained push on infrastructure-led development,” Singh noted.
Presented by the finance minister, the Union Budget lays out several steps to strengthen air connectivity and the domestic aviation manufacturing ecosystem, at a time when India ranks among the world’s fastest-growing civil aviation markets.
Moreover, Sitharaman announced a push for seaplane operations as part of a broader tourism strategy.
The move is seen as significant as the government looks to attract investment and deepen domestic manufacturing under its self-reliance agenda.
Similar duty exemptions will apply to raw materials imported for aircraft parts used in maintenance, repair and overhaul (MRO) activities, including in the defence sector.
Singh further noted the relevance of the Budget’s focus on medical value tourism and destination development. “These initiatives can drive high-frequency, purpose-led inbound travel, particularly from the Middle East and Southeast Asia, which is strategically important for Indian carriers,” he said.
Ajay Singh, Chairman and Managing Director of SpiceJet, echoed the sentiment, calling the Budget a clear move towards long-term capacity-building.
“"At a time when the global economy is being tested by supply-chain shocks, trade barriers and rising uncertainty, Budget 2026 marks a clear shift from short-term stimulus to long-term capacity-building,” he said.
He also pointed to the nearly 9% increase in public capital expenditure as a crucial growth anchor, while noting that adherence to a fiscal glide path, with the deficit brought down to 4.3% of GDP, enhances policy credibility.
“Together, these measures signal a budget that is pragmatic, resilient and geared for sustainable growth,” the SpiceJet chief added.
Along the same lines, Vinay Dube, founder and CEO of Akasa Air, described the Budget as a forward-looking framework to accelerate tourism and mobility across the country.
With travel demand increasingly being driven by Tier-II and Tier-III cities alongside major metros, he said the focus on last-mile connectivity and infrastructure upgrades is particularly encouraging for airlines.
“We appreciate the government's continued focus on creating a resilient, future-ready travel ecosystem and thank them for their sustained commitment to building a Viksit Bharat,” Dube said.
(With PTI inputs)
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Aloke Singh, Managing Director of Air India Express, said the Budget sends “a strong and reassuring signal” for India’s long-term growth trajectory.
Anchored in sustained capital expenditure, the proposals provide a structural foundation for tourism-led development, which in turn supports the expansion of civil aviation.
“The Union Budget 2026-27 sends a strong and reassuring signal for India's long-term growth, anchored in fiscal discipline and a sustained push on infrastructure-led development,” Singh noted.
Presented by the finance minister, the Union Budget lays out several steps to strengthen air connectivity and the domestic aviation manufacturing ecosystem, at a time when India ranks among the world’s fastest-growing civil aviation markets.
Moreover, Sitharaman announced a push for seaplane operations as part of a broader tourism strategy.
Infrastructure, tourism and manufacturing in focus
Meanwhile, a key announcement welcomed by the industry was the exemption of basic customs duty on components and parts used in the manufacture of civilian, training and other aircraft.The move is seen as significant as the government looks to attract investment and deepen domestic manufacturing under its self-reliance agenda.
Similar duty exemptions will apply to raw materials imported for aircraft parts used in maintenance, repair and overhaul (MRO) activities, including in the defence sector.
Singh further noted the relevance of the Budget’s focus on medical value tourism and destination development. “These initiatives can drive high-frequency, purpose-led inbound travel, particularly from the Middle East and Southeast Asia, which is strategically important for Indian carriers,” he said.
Ajay Singh, Chairman and Managing Director of SpiceJet, echoed the sentiment, calling the Budget a clear move towards long-term capacity-building.
“"At a time when the global economy is being tested by supply-chain shocks, trade barriers and rising uncertainty, Budget 2026 marks a clear shift from short-term stimulus to long-term capacity-building,” he said.
He also pointed to the nearly 9% increase in public capital expenditure as a crucial growth anchor, while noting that adherence to a fiscal glide path, with the deficit brought down to 4.3% of GDP, enhances policy credibility.
“Together, these measures signal a budget that is pragmatic, resilient and geared for sustainable growth,” the SpiceJet chief added.
Along the same lines, Vinay Dube, founder and CEO of Akasa Air, described the Budget as a forward-looking framework to accelerate tourism and mobility across the country.
With travel demand increasingly being driven by Tier-II and Tier-III cities alongside major metros, he said the focus on last-mile connectivity and infrastructure upgrades is particularly encouraging for airlines.
“We appreciate the government's continued focus on creating a resilient, future-ready travel ecosystem and thank them for their sustained commitment to building a Viksit Bharat,” Dube said.
(With PTI inputs)
