Defense Policy and Budgeting

Govt exempts customs duty on 18 defense imports, boosting military readiness.

The Indian government has exempted customs duties on 18 categories of defense-related imports, including military aircraft, missiles, underwater vessels, and drone batteries, effective September 22, 2025. This initiative is part of a broader tax overhaul by the GST Council aimed at modernizing India’s defense capabilities and simplifying taxation. By easing the financial burden on defense imports, the government is fostering a more robust defense industry while also aligning with its strategic goals to enhance military readiness. This move reflects a commitment to advancing India’s defense infrastructure and supporting national security objectives.

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