Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 with a major focus on improving travel infrastructure in India. The government has announced new measures to introduce Seaplane operations to connect remote areas and promote tourism. A significant amount has also been set aside to boost the manufacturing of aircraft within the country.
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Seaplane operations and tax relief
The government will launch a Viability Gap Funding (VGF) scheme to encourage the use of Seaplanes. This move aims to provide last-mile connectivity to places where building improved airports is difficult. To support domestic manufacturing, the Finance Minister announced that there will be no basic customs duty on tools and parts imported for making civil and training aircraft. The tax on raw materials for the Maintenance, Repair, and Overhaul (MRO) sector has also been removed.
Budget for Roads and Aviation
The allocation for the regional air connectivity scheme UDAN has been increased to help more common people fly. The road transport sector also received a higher budget to ensure better highways across the nation. The National Highways Authority of India (NHAI) will use these funds to expand the road network and reduce its debt.
| Sector/Scheme | New Allocation |
|---|---|
| UDAN Scheme | ₹550 Crore |
| Road Ministry (MoRTH) | ₹3.09 Lakh Crore |
| NHAI | ₹1.87 Lakh Crore |
