Budget 2026: FM Sitharaman announces customs duty relief for defence aircraft repair, training planes

Budget 2026 | Union Finance Minister Nirmala Sitharaman, while presenting the Union Budget for FY 2026, announced a series of basic customs duty (BCD) exemptions and tariff cuts, aimed at easing costs in sectors ranging from defence aviation and healthcare to nuclear power and clean energy.

Among the key announcements, Sitharaman said the government will provide basic customs duty exemptions on raw material imported for making aircraft parts used in maintenance, repair, or overhaul in the defence sector. She also announced a duty exemption for parts of civilian training aircraft.

Additionally, basic customs duty will be exempted on the import of sodium antimonate for use in the manufacture of solar glass, supporting clean energy and storage infrastructure.

In a major relief for patients and the healthcare sector, the finance minister said the government will exempt 17 anti-cancer drugs from basic customs duty. She also announced a cut in import tariffs on dutiable personal-use goods, saying the government will reduce the tariff rate to 10% from 20%.

On the energy front, Sitharaman said the government will extend the BCD exemption on nuclear power goods imports till 2035, signalling continued support for long-term nuclear energy expansion. She also announced an extension of the duty exemption on capital goods for lithium-ion batteries.