India is one of the fastest growing aviation markets globally. While its maintenance, repair and overhaul (MRO) ecosystem had historically lagged behind fleet expansion, this gap is now steadily narrowing. With policy support, rising domestic capabilities, and investments by global original equipment manufacturers and Indian players, the MRO sector is emerging as a critical pillar of India’s aviation growth story. Policy reforms have significantly accelerated MRO growth over the years. Further, fiscal measures, including GST rationalisation, a uniform 5 per cent IGST on aircraft parts, 100 per cent foreign direct investment under the automatic route and incentives under the Atmanirbhar Bharat initiative, have made India’s MRO ecosystem significantly more competitive and investment-friendly. More recently, state-level initiatives are also adding momentum. The Assam MRO Policy 2025, approved by the state cabinet, targets the establishment of at least three fully operational MRO facilities by 2030, attracting investments exceeding Rs 15 billion.
Expanding domestic capabilities
India’s fleet support ecosystem has strengthened significantly across routine maintenance, component repairs and heavy airframe checks. The number of approved MROs in the country has increased from 96 in 2014 to 166 as of November 2025, reflecting growing confidence in domestic technical capabilities. Import dependence for on-wing and line maintenance has dropped significantly and is now limited to 10-20 per cent. However, India remains heavily import-dependent for components, airframes and engines, with reliance exceeding 60 per cent. However, this gap is gradually narrowing.
Air India Engineering Services Limited (AIESL) has emerged as a major player in domestic repair capabilities. In February 2026, AIESL successfully completed a critical U13 stringer repair on a wide-body aircraft (VT-ALL) using Boeing-approved structural drawings, fully compliant with Federal Aviation Administration standards and certified by the Directorate General of Civil Aviation. AIESL Delhi has secured line and base maintenance approvals for B737 MAX variants, significantly reducing ferry costs for Indian airlines. In January 2026, AIESL’s Nagpur facility was upgraded to perform comprehensive checks on Boeing 777 aircraft, positioning it as a premier wide-body heavy maintenance hub. This development marks a significant step towards reducing dependence on overseas facilities for major airframe overhauls.
The high-value frontier
Engines represent the single largest segment of the MRO market, accounting for around 45 per cent of total MRO expenditure. For heavy maintenance, many Indian carriers still ferry aircraft to Singapore, Malaysia and Indonesia, a practice that is both time-consuming and expensive. Domestic capability is now scaling rapidly. The inauguration of Safran Aircraft Engine Services India at the GMR Aerospace and Industrial Park in Hyderabad on November 26, 2025 marks a turning point. The €200 million, 45,000 square metre facility, targeted to be operational from 2026, is designed to handle up to 300 leading edge aviation propulsion (LEAP) engine shop visits annually. The facility will serve the rapidly growing CFM LEAP engine fleet powering Airbus A320neo and Boeing 737 MAX aircraft.
Strategic partnerships
India’s MRO sector is also benefiting from strategic collaborations. In January 2026, Adani Defence and Aerospace and Embraer signed an MoU to establish a regional transport aircraft ecosystem covering manufacturing, assembly and MRO. Similarly, AXISCADES Technologies and OGMA (Embraer Group) are collaborating to explore and develop business opportunities in the defence, commercial aerospace and aerostructures sectors on a global scale. Maintenance and support would be provided for Embraer and other manufacturers’ aircraft fleet in India. These partnerships signal a shift from standalone maintenance services towards integrated aerospace ecosystems. Additionally, in the regional aviation space, Apogee Aerospace has placed an order for 15 amphibious aircraft valued at Rs 35 billion, alongside a Rs 5 billion investment in manufacturing and MRO in India, anchored around the Albatross 2.0 aircraft in February 2026.
The road ahead
India today has over 160 operational airports and a commercial fleet of over 840 aircraft. Over the next 10-15 years, Indian carriers are expected to induct around 100 aircraft annually, with long-term projections indicating a fleet size of nearly 3,000 aircraft by 2047. This scale alone makes the development of a robust domestic MRO ecosystem inevitable. Looking ahead, the Indian MRO market is projected to reach $4 billion by 2031. Moreover, over the next decade, domestic engine MRO capacity alone could generate foreign exchange savings of up to $15 billion. At the same time, technology is becoming central to MRO transformation globally, but its adoption in India remains at an early stage, creating a significant opportunity. Technologies such as predictive maintenance, drones, robotics, etc., can help operators forecast failures, optimise inventory, reduce turnaround times and accelerate inspection. For MRO providers, this represents a strategic opportunity to leapfrog traditional systems and adopt next-generation digital infrastructure.
The sector is therefore transitioning from a support function to a strategic industry. While challenges remain, policy reforms, global investments and digital transformation are reshaping the landscape.
Vaishnavi
