India’s MRO Aviation Business To Double in Size to $4 billion, Says Civil Aviation Minister

The minister stated that the government aims to not only meet the needs of Indian airlines but also attract international carriers to use India’s MRO services. Strategic locations like Thiruvananthapuram have been identified for these services.

Naidu highlighted the recent unification of GST slabs for MRO components and services, a move designed to integrate domestic MROs into global value chains. He emphasized the government’s commitment to creating a robust environment for both domestic and international airlines to access world-class MRO facilities in India.

He also pointed out India’s geographical advantage, which allows the country to offer MRO facilities to numerous international airlines, positioning India as a competitive global player. The minister outlined key initiatives by the Ministry of Civil Aviation to strengthen the MRO sector and confirmed ongoing efforts to harmonize Indian MRO facilities with international standards.

Naidu also discussed the potential of the Production Linked Incentive (PLI) scheme to drive further growth in the MRO industry. He mentioned that the government might consider extending the PLI scheme to the MRO sector, depending on industry demand.

As part of recent Union Budget announcements, the government has extended the period for exporting goods imported for repairs from six months to one year. Additionally, the government has exempted customs duties on tools and toolkits and allowed 100% Foreign Direct Investment (FDI) via the Automatic Route for MROs to ensure the best possible Turn Around Time (TAT).

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