Defense Business and Industry

Govt ends missile parts tax exemption amid Adani investigation concerns.

The Indian government has rescinded a previous policy that exempted all missile parts from import taxes, reverting to older regulations that only exempt certain parts for long-range missiles. This change follows an investigation into the Adani Group, specifically its defense arm, over allegations of tax evasion concerning imports of short-range missile components. The reversal, issued via a correction notice, raises questions about the government’s transparency and its implications for domestic defense manufacturing. As Adani Defence Systems and Technologies continues to import substantial defense parts, this decision reflects the complexities of India’s defense procurement policies and their potential impact on domestic manufacturers’ competitiveness in a growing defense landscape.

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