Market Reports

MRO Industry in India

1	Overview: MRO Industry in India
2	Key Indian Players in the MRO Industry
3	Key Segments of the MRO Industry
4	Government Initiatives for India MRO Sector
5	Megatrends in the Indian MRO Sector
6	Why India for Investment in the MRO Sector?

Overview: MRO Industry in India

The MRO (Maintenance, Repair, and Overhaul) industry plays a crucial role in the aviation sector by ensuring the safety, performance, and reliability of aircraft. It encompasses a variety of services, such as routine maintenance, repairs of specific damaged components, and overhauls that involve thorough inspections and refurbishments. These services are critical to keeping aircraft in optimal working condition and are divided into key sub-segments, including engine maintenance, airframe upkeep, component repairs, and avionics services. In India, the MRO market has been expanding steadily in recent years, driven by the rising demand in both domestic aviation and regional aerospace activities.

India’s MRO market is currently valued at INR 185 billion, primarily servicing its growing commercial aircraft fleet. This market is expected to grow at an annual rate of ~9%, reaching around INR 340 billion by 2031, in line with the increase in the fleet size. However, a significant challenge remains as only 15-20% of the MRO services are performed locally, with the remaining 80-85% outsourced to International providers. Engine MRO, which accounts for nearly 50% of the total market, is almost entirely handled overseas. In addition, the Defence MRO market in India is expected to grow to INR 260 billion by 2031 to support the country’s fleet of over 2,000 aircraft.

Key Indian Players in MRO Industry

Air India Engineering Services Limited (AIESL)

AIESL is India’s largest MRO service provider, offering comprehensive maintenance, repair, and overhaul services for a wide range of aircraft, including Airbus and Boeing models.
AIESL is certified by DGCA, FAA, EASA, and other International agencies, ensuring compliance with global standards.
The company operates MRO facilities at major airports like Delhi, Mumbai, and Chennai, with services ranging from line maintenance to heavy checks.

GMR Aero Technic (GAT)

GAT operates its MRO facilities at Hyderabad Airport, one of the largest and most advanced MRO hubs in India, offering services for wide-body aircraft like the Airbus A330 and Boeing 777.
GAT leverages state-of-the-art technology, including 3D printing for component repairs and digital diagnostic tools for efficient maintenance.
GMR Aero Technic is focusing on expanding its service offerings and upgrading its facilities to handle next-generation aircraft like the Airbus A350 and Boeing 787.

IndiGo:

IndiGo operates its own MRO facilities in Delhi, Hyderabad, and Gurgaon, handling aircraft maintenance for its fleet of over 250 aircraft.
The airline has focused on reducing its MRO expenses by establishing in-house services, which allow it to maintain its A320 fleet efficiently and economically.

Tata Group

Tata Group is a prominent player in the defence MRO segment, providing maintenance, repair, and overhaul services for military aircraft and helicopters.
Tata Group has a significant partnership with Airbus for the A330 MRTT (Multi-Role Tanker Transport) aircraft maintenance, strengthening its position in the defence and commercial MRO sectors.

Key Segments of MRO Industry

Line Maintenance	Component Maintenance	Airframe Heavy Maintenance & Modification	Engine Maintenance
Carried out during turnarounds, while the aircraft is still in its operating environment	Around 3 months/300-500 hours depending on the type of aircraft.	As mandated, depending on aircraft type involves the removal of an aircraft from service, for a period ranging up to 30 days.	Around 12-18 months/5000 hours, depending on the type of aircraft.
Relatively straightforward tasks that mostly involve routine-in-service inspection, check actions, troubleshooting, and rectifications	Aircraft components such as avionics units, engines, and landing gear are inspected in detail in a specialist shop, after being removed during various checks.	Occurs with a hangar with specialized tools, involving time-consuming tasks such as C & D checks.	Involves repair, service, and inspection of the aircraft engines to maintain airworthiness and meet International standards.
Does not require additional infrastructure such as hangars but is limited by the availability of the ground support equipment.	A component maintenance manual refers to understanding the tasks that are required for a particular component to restore it to a serviceable state.	Generally, it includes structural work, corrosion prevention, interior refurbishment, and replacement of major components.	Generally, it includes structural work, corrosion prevention, interior refurbishment, and replacement of major components.

Government Initiatives for India MRO Sector

National Civil Aviation Policy (NCAP) 2016

Aimed to make India a global hub for MRO services.
Focuses on reducing the tax burden and improving the ease of doing business.
Provides incentives for MRO companies, including concessional landing and parking charges at airports.
Customs duty on aircraft components was reduced to 0% for items used in MRO activities

MRO Policy 2021

In a significant move to support the domestic MRO industry and the aviation sector, the Government has declared that a uniform 5% IGST will be applied to imports of aircraft parts, components, testing equipment, tools, and toolkits, regardless of their HSN classification, provided certain conditions are met.
The policy allows 100% FDI under the automatic route for MRO services, encouraging foreign players to invest and set up operations in India.
The government is promoting the development of skilled manpower through specialized training programs, collaborations with global institutions, and the establishment of the National Aviation University
The policy aims to reduce MRO costs by up to 30-40% and encourages domestic airlines to use Indian MRO services, promoting self-reliance and reducing dependence on foreign facilities.

Development of MRO Hubs

The government has proposed developing dedicated MRO hubs in various cities like Delhi, Hyderabad, and Mumbai.
Indira Gandhi International Airport (IGI), Delhi: India’s largest MRO facility is under development here, with an INR 50 billion investment.
Hyderabad: The airport is developing an advanced MRO facility with an INR 8 billion investment from Lufthansa Technik.

Public-Private Partnerships (PPP)

The government is encouraging public-private partnerships to bring global MRO players into the Indian market.
Encouraging foreign direct investment (FDI) to establish partnerships that benefit from International expertise and technological advancements.
The government is working with private players to provide incentives and tax rebates for setting up domestic MRO operations, promoting self-reliance in aircraft maintenance.

Megatrends in the Indian MRO Sector

Technological Advancements and Digitalization

The adoption of AI-driven predictive maintenance tools is enabling airlines and MRO providers to anticipate issues before they arise, reducing downtime and improving aircraft availability.
MRO companies are increasingly utilizing robotic process automation (RPA) and drones for inspection tasks, significantly reducing human error and improving efficiency in operations.
The use of digital twin models for aircraft is growing, allowing real-time monitoring of aircraft health, optimizing maintenance schedules, and reducing operational costs

Shift Towards Self-Reliance and Domestic MRO Services

With rising fleet numbers, India is focusing on increasing domestic MRO capabilities to reduce reliance on foreign MRO facilities, creating a self-sustaining ecosystem.
As India’s domestic fleet grows, airlines like IndiGo and SpiceJet are building in-house MRO capabilities, reducing the need for outsourcing and fostering local expertise.
India’s defense sector is increasingly focusing on developing Indigenous MRO capabilities for military aircraft, reducing the reliance on foreign contractors for defence maintenance services.

Focus on Sustainability and Eco-friendly Practices

The Indian MRO sector is increasingly adopting environmentally sustainable practices, such as using eco-friendly materials, reducing carbon emissions, and recycling aircraft components.
The growing emphasis on energy-efficient technologies in MRO facilities, such as LED lighting and solar-powered systems, is helping companies reduce operational costs and environmental impact.
MRO companies are collaborating with airlines to promote the use of sustainable aviation fuels, which require specialized maintenance practices and parts, contributing to eco-friendly operations.

Why India for Investment in the MRO Sector?

Strategic Location and Growing Aviation Market

Proximity to Key Markets: India’s geographical location in South Asia makes it an ideal hub for servicing aircraft from the Middle East, Southeast Asia, and other regions.
Largest Domestic Aviation Market: India is the 3rd largest aviation market in the world and domestic passenger traffic is expected to double to 300 million by 2030.
Expanding Fleet: India’s airline fleet is growing rapidly, with IndiGo, Air India, and SpiceJet collectively operating over 600 aircraft and expecting to add about 600 planes in the next five years.
Global Connectivity: With around 150 airports India provides extensive connectivity for MRO services across the country and region.

Cost Advantage

Low Labour Costs: India offers highly cost-effective labour, with skilled engineers and technicians available at a fraction of the cost compared to Western markets. Labour costs in India are around 30-40% lower than in mature markets like the US or Europe.
Operational Cost Savings: The MRO industry in India can save up to 30-40% of costs for global airlines, making it an attractive destination for outsourcing maintenance work.
Low Infrastructure Costs: Costs related to land acquisition and setting up operations are more affordable compared to other MRO hubs, further enhancing India’s appeal to investors.
Growing Domestic Demand: India is one of the largest importers of aviation services globally, with about 80% of its MRO needs met by foreign players, creating an opportunity for cost savings by localizing MRO services.

Government Support and Policy Framework

MRO Policy 2021: The government’s MRO Policy 2021 offers tax exemptions, concessional landing charges, and subsidized land rates for setting up MRO facilities.
100% FDI: India allows 100% Foreign Direct Investment (FDI) under the automatic route for MRO companies, making it easier for global players to invest.
Regulatory Support: The Directorate General of Civil Aviation (DGCA) is actively working to align Indian MRO facilities with global safety and regulatory standards, with many facilities obtaining FAA and EASA certifications.
Skill Development Initiatives: The government is promoting skilled labour development in the aviation sector through programs like the National Aviation University, ensuring a continuous supply of qualified technicians.

Rising Demand for Domestic MRO Services

Self-Reliance in MRO: India’s MRO industry currently services only 20% of its domestic needs, with the remaining 80% outsourced abroad. This represents a huge opportunity to reduce foreign dependency and capture a larger market share.
Airline Growth: India’s domestic airline fleet is expected to grow to over 1,000 aircraft by 2030, leading to an increasing demand for MRO services within the country.
Defence MRO Opportunities: The Indian government is also focusing on Defence MRO capabilities to cater to its rapidly expanding fleet of military aircraft, which is expected to drive cross-sector growth in the MRO market.
Reduction in Maintenance Costs for Airlines: With local MRO services, airlines can significantly reduce their operational costs.

Market Reports

MRO Industry in India

Overview: MRO Industry in India

Key Indian Players in MRO Industry

Key Segments of MRO Industry

Government Initiatives for India MRO Sector

Megatrends in the Indian MRO Sector

Why India for Investment in the MRO Sector?

Our Team

Meet Our Experts

Follow us

Download PDF