India’s Budget for 2019: No Import Tax On Defense Equipment To Accelerate Modernization

  • Our Bureau
  • 01:35 PM, July 5, 2019
  • 3109
India’s Budget for 2019: No Import Tax On Defense Equipment To Accelerate Modernization
Finance Minister Nirmala Sitharaman with her team members (Image: The Hindu)

To encourage and speedup modernization in the defense sector, India has exempted customs duty on defense and military hardware imported from other countries.

“Defense has an immediate requirement of modernization and upgradation. This is a national priority. For this purpose, imports of defense equipment that are not being manufactured in India are being exempted from the basic customs duty,” Nirmala Sitharaman, Finance Minister of India, said, while presenting the Union Budget 2019.

Indian Defense spending for 2019-20 has been estimated at 3.05 trillion rupees ($45 billion). Although higher than the previous fiscal of 2.85 trillion rupees ($41.5 billion), the increase only compensates for the inflation.

India has a number of defense related buys in the pipeline. These include procurement of 114 fighter jets for $15 billion to supplement its depleting fleet of combat aircraft, acquiring 10 Boeing P-8I maritime patrol aircraft for $3 billion, $900 million MiG-29 buy, contract for additional Su-30MKI jets, 464 Russian T-90 tanks for $2 billion; 57 aircraft carrier-based fighters, 111 naval utility helicopters and 12 MQ-9 Sea Guardian drones for its navy, and more.

New Delhi has also issued request for proposal (RFP) for 6 next generation missile vessels for $2 billion, and its $14.4 billion project to develop a nuclear-powered submarine has also reportedly been kick started.

Also Read

India To Get French Rafale Fighters In September

July 2, 2019 @ 05:00 PM

Indian Navy Issues RFP For 6 Next Generation Missile Vessels Worth $2

July 2, 2019 @ 03:54 PM

India's $14.4B Nuclear-Powered Sub Project Kicks Off

June 26, 2019 @ 05:15 AM

India To Buy 10 Additional Boeing P-8I Maritime Patrol Aircraft For $3

June 24, 2019 @ 07:34 AM

India To ‘Scrap’ Project To Convert INS Viraat To Heritage Site

July 8, 2019 @ 10:03 AM

India To Give The Final Go-ahead To $1.7 Billion C-295 Transport Aircraft

July 8, 2019 @ 08:15 AM

Indian Army To Buy Excalibur Artillery Ammo For Its New M-777 Howitzers

July 8, 2019 @ 07:41 AM