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India’s MRO Sector Projected to Reach $4 Billion by 2031, Says Civil Aviation Minister

India’s MRO Sector Projected to Reach $4 Billion by 2031
India’s aircraft maintenance, repair, and overhaul (MRO) market is poised for substantial growth, with projections estimating its value to reach $4 billion by 2031. Civil Aviation Minister K Rammohan Naidu announced this forecast during the inauguration of Safran Aircraft Engine Services India’s (SAESI) new MRO facility in Hyderabad. The minister underscored India’s emerging status as a preferred destination for aircraft maintenance activities, highlighting the strategic importance of expanding domestic MRO capabilities.
The SAESI facility, expected to be operational by 2026, represents a significant step in bolstering India’s indigenous aviation infrastructure. Naidu emphasized that developing such facilities domestically could lead to foreign exchange savings of up to $15 billion in the coming years. These savings, he noted, have the potential to reduce operational costs for airlines, which may ultimately benefit passengers through more competitive pricing.
Growth Prospects and Industry Challenges
India’s civil aviation sector is among the fastest-growing globally, with domestic carriers having placed orders for over 1,500 aircraft. The minister projected an annual growth rate of 8.9% for the MRO sector through 2031, positioning the country on a trajectory to become a global aviation hub. However, industry stakeholders acknowledge that several challenges remain. Complex regulatory frameworks governing aircraft dismantling and MRO services continue to pose obstacles, as exemplified by Inavia Aviation’s ongoing efforts to establish a dedicated MRO hub in Bhopal. Furthermore, the Indian regulator’s review of aircraft import rules introduces additional uncertainty that could impact the sector’s development.
Despite these hurdles, confidence in India’s MRO market remains robust. The recent completion of Air India’s A320neo retrofit program highlights the expanding technical capabilities within the country. International collaborations, such as the partnership between Corendon Airlines and Air India Engineering Services Limited (AIESL), further demonstrate growing trust in India’s MRO infrastructure. Nevertheless, AIESL faces challenges related to delays in privatization and regulatory ambiguities, which cloud its future prospects.
As India continues to invest in aviation infrastructure and works toward regulatory reforms, industry leaders remain optimistic that the country will consolidate its position as a key player in the global MRO landscape.

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