Budget 2025 Aviation Sector: India’s aviation sector is developing rapidly and many important announcements can be made for this sector in the upcoming budget 2025-26. Finance Minister Nirmala Sitharaman is going to present the general budget on February 1, in which some big announcements are expected for the aviation sector. In this report, we will talk about those possible announcements which can give a new direction to this sector and can also impact the stock market.
What kind of announcements can be made
The first announcement may be on investment in aviation infrastructure. The government has already indicated that it plans to invest heavily in airports and airline services. This investment will not only be for the expansion of existing airports, but will also be for the construction of new airports. This is expected to increase the number of domestic and international flights.
The second announcement may be regarding the license of new airlines. Actually, the government is considering giving licenses to new airlines, which will increase competition and passengers will get better services. Due to this, existing airlines will also have to consider improving their service levels.
The third announcement may be on tax exemption on aviation fuel. A proposal to give tax exemption on aviation fuel is also under discussion. This will reduce the operating costs of airlines, which will enable them to keep ticket prices competitive.
The fourth announcement may be on security and technical improvements. Funding can be announced in the budget to strengthen security measures and adopt new technologies. This will not only increase security but will also improve the experience of traveling by air.
The fifth announcement may be on digitalization and smart airports. In fact, the government can emphasize on the development of smart airports, in which digital technologies will be used. This will provide convenient travel experience to the passengers.
impact on stock market
These possible announcements can have a direct impact on the shares of aviation sector companies. If there are positive announcements in the budget, then shares of companies like IndiGo, SpiceJet and Air India may see a rise. Experts believe that if the government decides to give tax exemption on aviation fuel, it can increase the profits of airlines.
Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always seek expert advice before investing money as an investor. ABPLive.com does not advise anyone It is never advisable to invest money here.)
Also read: Dixon Technologies: Despite excellent results, this multibagger stock fell by more than Rs 2400, brokerage house is still bullish
