India's civil aviation sector received a significant push as the government highlighted its ambition to build the country into a global centre for aircraft maintenance, repair and overhaul (MRO) services. The Civil Aviation Minister noted that shifting MRO work to India could help save nearly USD 15 billion in foreign exchange over the coming years. With domestic airlines ordering more than 1,500 aircraft and the local MRO market projected to reach USD 4 billion by 2031, the sector is gaining strategic importance. A new Safran MRO facility, set to begin operations in 2026, is expected to strengthen India's capability further.
At an event held during the past week, Civil Aviation Minister K. Rammohan Naidu said India could potentially save up to USD 15 billion in foreign exchange in the coming years by developing itself into a global hub for aircraft maintenance, repair and overhaul operations. He shared this view during the launch of Safran's new MRO facility in Hyderabad, where he mentioned that India is steadily positioning itself as a preferred location for aircraft maintenance.
He pointed to the rapid expansion of the country's civil aviation market, which has become one of the fastest-growing worldwide. Domestic airlines have collectively placed orders for more than 1,500 aircraft, creating long-term demand for reliable and cost-efficient maintenance services. At present, a large share of MRO work for Indian carriers continues to be handled outside the country, which results in substantial foreign exchange spending.
The new Safran Aircraft Engine Services India (SAESI) facility in Hyderabad is planned to become operational in 2026. The minister said it will significantly strengthen India's technical capabilities and support the country's efforts to reduce dependence on overseas service providers. Industry estimates suggest that engine-related work makes up nearly 45% of the total MRO market, reflecting the importance of such dedicated facilities.
The minister also highlighted that India's MRO industry is projected to reach USD 4 billion by 2031, growing at 8.9%. He added that the cost savings achieved by performing MRO activities within the country would eventually benefit passengers as well. The government has been working on policies aimed at building a stronger and more competitive MRO ecosystem, which includes measures introduced over recent years to encourage investment, reduce costs, and simplify procedures for operators.
Source PTI
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023