India set to be global aviation hub with $4bn aviation industry
Aviation Minister Kinjrapu Rammohan Naidu has announced the implementation of a uniform IGST rate of 5% on all aircraft and aircraft engine parts, effective from 15 July 2024, a significant milestone for the domestic Maintenance, Repair, and Overhaul (MRO) industry worldofaviation expected to grow to US$4 billion 2030.
“The Indian MRO industry civilaviation is projected to become a US$4 billion industry by 2030,” he said, highlighting the future prospects.
“Our vision is to transform India into a leading aviation hub boeing. This policy change is a crucial step towards building a strong ecosystem for MRO services, driving innovation, and ensuring sustainable growth.”
Naidu said, “The introduction of a uniform 5% IGST rate on MRO items is a major boost for the aviation sector airbus and making India a global aviation hub.”
Previously, the varying GST rates of 5%,12%, 18%, and 28% on aircraft components created challenges, including an inverted duty structure and GST accumulation in MRO accounts farnboroughairshow .
“This new policy eliminates these disparities, simplifies the tax structure, and fosters growth in the MRO sector bombardier ,” he said.
The uniform 5% IGST rate aims to reduce operational costs, resolve tax credit issues and attract investment singaporeairshow.
The Ministry is confident that this move will significantly enhance the competitiveness of the Indian MRO sector, fostering innovation and efficiency, and creating a robust and efficient aviation sector siae , said the aviation ministry. Fiinews.com
