“For strategic sectors such as Aerospace and Defence, a more permanent framework for domestic sales from SEZs, would further strengthen India’s ability to meet growing indigenous demand while also becoming globally competitive.” Aravind Melligeri, Executive Chairman & CEO, Aequs Limited
The decision to allow eligible SEZ manufacturing units to sell into the Domestic Tariff Area at concessional duty is a significant boost for companies that have created large-scale capacities in both the consumer and aerospace and defence sectors. At a time of global demand volatility and trade disruptions, this pragmatic measure will help improve capacity utilization, support operating efficiencies, and provide greater flexibility for capital-intensive manufacturing operations. For strategic sectors such as Aerospace and Defence, a more permanent framework for domestic sales from SEZs, would further strengthen India’s ability to meet growing indigenous demand while also becoming globally competitive.
More broadly, the Budget’s sustained focus on manufacturing-led growth, infrastructure development, and global competitiveness reinforces long-term policy clarity and investor confidence. Initiatives such as India Semiconductor Mission 2.0, the expanded Electronics Components Manufacturing Scheme, customs duty exemptions for aircraft components and MRO-related raw materials, and the substantial increase in defence spending, with indications of up to a 20% hike, collectively support deeper localization, modernization, and private sector participation. Together, these measures will create a stable and enabling framework for companies to scale investments, deepen capabilities, and integrate India more firmly into global manufacturing value chains.
The author is Aravind Melligeri, Executive Chairman & CEO, Aequs Limited
