Union Budget 2019 India: The aviation sector is set to get a major boost with the government proposing to make India a hub of maintenance repair and overhaul (MRO) activities and aircraft financing, besides relaxing foreign direct investment rules for overseas carriers.
Policies would be changed to foster growth in MRO services, a long-standing demand of the industry. Further, aircraft leasing businesses, including leveraging opportunities at the financial special economic zone—International Financial Services Centre (IFSC)—will also be on the agenda. The Budget has also increased allocation to the regional connectivity scheme (Udan) by around 10% to `480 crore in FY20. India boasts of the third-largest domestic market in the world behind USA and China. It carried 139 million passengers in 2018, up 18.6 % year-on-year.
