Aviation leaders welcomes 2026-27 Budget as a catalyst for long term growth

The industry also said that a focus on structural reforms, deeper manufacturing capabilities, diversified supply chains, and future-ready investments shows recognition that volatile times call for foresight, not fiscal populism. The focus on structural reforms, deeper manufacturing capabilities, diversified supply chains and future-ready investments shows a recognition that volatile times call for foresight, not fiscal populism, he stated.

The Union Budget for 2026-27 sends a strong and reassuring signal for India's long-term growth, top aviation industry executives said on Sunday. The industry also said that a focus on structural reforms, deeper manufacturing capabilities, diversified supply chains, and future-ready investments shows recognition that volatile times call for foresight, not fiscal populism. ''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,'' Aloke Singh, Managing Director at Tata Group's owned Air India's low-cost subsidiary Air India Express, said. The continued emphasis on capital expenditure and destination-focused investment provides a solid structural framework for the expansion of tourism and, by extension, the civil aviation sector, Singh said. The Union Budget, presented by Union Finance Minister Nirmala Sitharaman on Sunday, has proposed measures to boost air connectivity as well as the aviation manufacturing ecosystem in the country, which is one of the world's fastest civil aviation markets. In her ninth straight Budget, Sitharaman announced various measures to boost tourism, including giving a push for seaplane operations. Also, basic customs duty exemption has been announced for components and parts required for the manufacture of civilian, training and other aircraft. This move assumes significance at a time when the government is seeking investments in the aviation space as part of larger efforts to boost the country's self-reliance. In addition, basic customs duty exemption will be provided for raw materials imported for manufacture of parts of aircraft to be used in maintenance, repair, or overhaul requirements by units in the defence sector. According to Singh, the Budget's focus on strengthening medical value tourism and destination development is particularly relevant for aviation, as it creates high-frequency, purpose-driven inbound travel, especially from regions such as the Middle East and Southeast Asia. ''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,'' SpiceJet Chairman and Managing Director Ajay Singh said. The focus on structural reforms, deeper manufacturing capabilities, diversified supply chains and future-ready investments shows a recognition that volatile times call for foresight, not fiscal populism, he stated. Singh also said the 9 per cent rise in public capital expenditure provides a much-needed growth anchor, while the government's adherence to a fiscal glide path, with the deficit brought down to 4.3 per cent of GDP, reinforces credibility and discipline. ''Together, these measures signal a Budget that is pragmatic, resilient and geared for sustainable growth,'' he said. According to Akasa Air founder and CEO Vinay Dube, ''The Union Budget for FY26-27 presents a forward-looking framework to comprehensively accelerate tourism and mobility across the country.'' With travel demand increasingly driven by Tier-2 and Tier-3 cities, along with the metros, he said, the focus on strengthening last-mile connectivity and infrastructure is encouraging for the travel industry. ''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,'' added Dube. SkyHop Aviation CEO Avani Singh said the seaplane push announced in the Budget 2026 is a welcome and much-needed step. ''For a country like India, with a long coastline, islands and extensive inland waterways, seaplanes can change the way remote and hard-to-reach regions are connected and open up entirely new parts of our country to tourism. ''The viability gap funding support is especially important as it makes these operations financially feasible and gives confidence to operators to invest and scale up. Over time, this can significantly boost regional connectivity, tourism and local economies, and provide a real boost to the aviation sector,'' she said. Avani Singh is the daughter of SpiceJet CMD Ajay Singh.

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