New Delhi, Jan 17: In line with the government’s increasing thrust on Atmanirbhar or Make in India initiative, the Budget could focus on incentivising the Maintenance, repair and overhaul (MRO) sector through greater push towards MRO activities in the country and push for building requisite infrastructure for promoting aircraft leasing companies or business domestically, rating agency ICRA has said in its pre-budget expectations report.
The Union Budget for financial year 22-23 will be tabled in the Parliament on February 1.
The agency said the Indian aviation industry expects financial aid and reduction in levies and taxes in the immediate near term to revitalise operations and boost passenger traffic, which include lowering taxes on ATF and reducing airport charges, parking and landing along with navigation charges among others.
The Union Budget 2022 is expected to reiterate focus on improving regional connectivity through RCS or UDAN, it said.
It is also likely to focus on setting up new airports and expanding the existing airport capacities at some key airports to help address the current airport infrastructure constraints faced by the airlines and to improve connectivity with the underserved/unserved airports to boost tourism, it added.
‘The government is also expected to undertake other measures to boost tourism like developing more iconic tourist destinations and expanding the e-visa or visa on arrival scheme to additional countries,’ the agency said.
