India Turning into a Global MRO & Aerospace Hub

India’s aviation sector is soaring to new heights, not just in passenger traffic but also in strategic capabilities. Among the most promising frontiers is Maintenance, Repair and Overhaul (MRO), a domain that could soon position India turning into a global MRO &  aerospace hub. With massive fleet expansion, policy reforms and growing investments, India’s MRO and aerospace industry is on the verge of transformation.

Understanding the MRO Opportunity

The global MRO market is valued at over 90 billion US Dollar annually, and India’s share currently stands at a modest 1 – 2%. However with the country projected to have over 2,000 commercial aircraft by 2040, the potential for domestic and regional maintenance facilities is immense.

Traditionally, Indian airlines have sent aircraft overseas to Singapore, Dubai or Malaysia for major maintenance, costing the industry billions in foreign exchange each year. But this trend is changing rapidly.

Government Push and Policy Reforms

To strengthen India’s aviation ecosystem, the government has introduced several initiatives aimed at developing the local MRO sector:

• Reduced GST on MRO services from 18% to 5% to make domestic operations more competitive.
• 100% FDI allowed under the automatic route for MRO organizations.
• Development of dedicated MRO zones near major airports such as Delhi, Bengaluru, Hyderabad and Nagpur.
• Integration of MROs into airport master plans, ensuring better infrastructure and accessibility.

These reforms not only encourage global players to set up MRO’s in India but also enable local companies to scale up operations and capabilities.

Major Investments and Industry Growth

Leading Indian airlines and aerospace firms are taking decisive steps to expand their MRO footprints:

• IndiGo is setting up a INR 1,100 crore MRO facility at Kempegowda International Airport, Bengaluru designed to service its growing Airbus fleet.
• Air India, under the Tata Group is building a strong in-house MRO network as part of its multi-billion-dollar fleet expansion.
• GMR and Adani Groups are investing in integrated MRO and aircraft component repair hubs.
• Global OEMs like Boeing, Airbus and Pratt & Whitney are partnering with Indian institutions for component assembly, engine maintenance and skill training.

These collaborations are creating a robust ecosystem that spans engineering, supply chains, component manufacturing and training.

Why India Has a Competitive Edge

India’s transformation into an MRO hub is driven by several strategic advantages:

1. Cost Efficiency – Labor costs are 30–40% lower than in established MRO hubs like Singapore or Dubai.
2. Strategic Location – Positioned between Europe and Southeast Asia, India can service both domestic and international fleets.
3. Growing Skilled Workforce – Institutes like the Falcon Institute of Aircraft Maintenance Engineers (FIAME) and other DGCA approved institutes are producing certified AME professionals.
4. Strong Policy Support – Continued focus under the National Civil Aviation Policy and Make in India initiative ensures sustainable industry growth.

Challenges That Still Remain

While progress is promising, the Indian MRO and aerospace sector still faces challenges:

• Need for advanced infrastructure and technology to handle next-generation aircraft.
• Certification and regulatory harmonization with global standards like EASA and FAA.
• Limited domestic component manufacturing, leading to import dependencies.
• High capital expenditure for setting up hangars, tooling and testing facilities.

Addressing these gaps through public & private partnerships and global collaborations will be essential for the long term success.

Future Outlook: A Vision for 2035

By 2035, India aims to capture at least 10% of the global MRO market, translating into billions in annual revenue and thousands of new jobs. The sector is expected to evolve beyond basic maintenance into component manufacturing, aircraft conversion and aerospace R&D.

If current trends continue, India will not only maintain its aviation growth trajectory but also emerge as a preferred destination for global MRO and aerospace innovation.

Summery

India’s journey toward becoming a global MRO and aerospace hub is no longer just an aspiration, it’s a strategic inevitability. With strong policy backing, massive fleet orders, skilled manpower and investor confidence, the stage is set for India to redefine its role in the global aviation ecosystem.