+
Aviation Sector Seeks PLI Scheme
AVIATION & AIRPORTS

Aviation Sector Seeks PLI Scheme

In anticipation of the upcoming Budget 2024-25, the aviation sector is advocating for a Production Linked Incentive (PLI) scheme for component manufacturing, following the establishment of a uniform Integrated Goods and Services Tax (IGST) rate. Industry stakeholders believe these measures are crucial for fostering growth, investment, and overall industry development.

The aviation sector has long faced challenges due to varied IGST rates across states, leading to increased complexity and costs in procurement and manufacturing processes. The recent move towards a uniform IGST rate is seen as a significant step towards simplifying tax structures and promoting a more business-friendly environment. This change is expected to reduce administrative burdens and enhance efficiency in the sector.

Building on this progress, the industry is now urging the government to introduce a PLI scheme specifically for aviation component manufacturing. Such a scheme would provide financial incentives to manufacturers based on their production output, encouraging greater investment and expansion in the sector. The PLI scheme aims to boost domestic manufacturing capabilities, reduce dependency on imports, and position India as a competitive player in the global aviation market.

Industry experts highlight that the PLI scheme could attract significant investments from both domestic and international companies. By incentivizing local production, the scheme would create jobs, foster technological advancements, and enhance the overall competitiveness of the Indian aviation sector. Additionally, it aligns with the government's broader vision of 'Atmanirbhar Bharat' (Self-Reliant India), promoting self-sufficiency and reducing reliance on foreign suppliers.

The introduction of a PLI scheme would also address the growing demand for advanced aviation components, driven by the rapid expansion of the Indian aviation market. As air travel continues to rebound post-pandemic, there is an increasing need for high-quality, locally-manufactured components to support the fleet expansion plans of airlines. The PLI scheme could help meet this demand by encouraging the establishment of more manufacturing units and fostering innovation in the sector.

Moreover, a PLI scheme for aviation component manufacturing could stimulate research and development activities, leading to the creation of cutting-edge technologies and products. By nurturing a robust ecosystem of manufacturers, suppliers, and researchers, India could become a global hub for aviation component production, attracting talent and expertise from around the world.

The aviation sector's call for a PLI scheme underscores the importance of supportive government policies in driving industry growth and development. As the Budget 2024-25 approaches, stakeholders are hopeful that the government will consider their recommendations and introduce measures that will propel the aviation sector towards a brighter and more sustainable future.

Overall, the proposed PLI scheme, combined with the uniform IGST rate, represents a comprehensive approach to addressing the challenges faced by the aviation sector and unlocking its full potential. With the right policies in place, the industry is poised for significant growth, contributing to the broader economic development of the country.

In anticipation of the upcoming Budget 2024-25, the aviation sector is advocating for a Production Linked Incentive (PLI) scheme for component manufacturing, following the establishment of a uniform Integrated Goods and Services Tax (IGST) rate. Industry stakeholders believe these measures are crucial for fostering growth, investment, and overall industry development. The aviation sector has long faced challenges due to varied IGST rates across states, leading to increased complexity and costs in procurement and manufacturing processes. The recent move towards a uniform IGST rate is seen as a significant step towards simplifying tax structures and promoting a more business-friendly environment. This change is expected to reduce administrative burdens and enhance efficiency in the sector. Building on this progress, the industry is now urging the government to introduce a PLI scheme specifically for aviation component manufacturing. Such a scheme would provide financial incentives to manufacturers based on their production output, encouraging greater investment and expansion in the sector. The PLI scheme aims to boost domestic manufacturing capabilities, reduce dependency on imports, and position India as a competitive player in the global aviation market. Industry experts highlight that the PLI scheme could attract significant investments from both domestic and international companies. By incentivizing local production, the scheme would create jobs, foster technological advancements, and enhance the overall competitiveness of the Indian aviation sector. Additionally, it aligns with the government's broader vision of 'Atmanirbhar Bharat' (Self-Reliant India), promoting self-sufficiency and reducing reliance on foreign suppliers. The introduction of a PLI scheme would also address the growing demand for advanced aviation components, driven by the rapid expansion of the Indian aviation market. As air travel continues to rebound post-pandemic, there is an increasing need for high-quality, locally-manufactured components to support the fleet expansion plans of airlines. The PLI scheme could help meet this demand by encouraging the establishment of more manufacturing units and fostering innovation in the sector. Moreover, a PLI scheme for aviation component manufacturing could stimulate research and development activities, leading to the creation of cutting-edge technologies and products. By nurturing a robust ecosystem of manufacturers, suppliers, and researchers, India could become a global hub for aviation component production, attracting talent and expertise from around the world. The aviation sector's call for a PLI scheme underscores the importance of supportive government policies in driving industry growth and development. As the Budget 2024-25 approaches, stakeholders are hopeful that the government will consider their recommendations and introduce measures that will propel the aviation sector towards a brighter and more sustainable future. Overall, the proposed PLI scheme, combined with the uniform IGST rate, represents a comprehensive approach to addressing the challenges faced by the aviation sector and unlocking its full potential. With the right policies in place, the industry is poised for significant growth, contributing to the broader economic development of the country.

Next Story
Infrastructure Transport

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Next Story
Infrastructure Urban

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Next Story
Infrastructure Urban

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Open In App