NEW DELHI - India's Maintenance, Repair, and Overhaul (MRO) industry is poised for significant growth, with projections indicating a potential revenue of $55-60 billion by fiscal 2028, a substantial increase from its current figures. This forecast aligns with the country's emergence as the third-largest aviation market globally, driving the expansion of MRO services to meet the rising demand.
Recent developments have underscored this upward trajectory. Air India Engineering Services Limited (AIESL) recently achieved a significant milestone by completing a heavy check on a Boeing (NYSE:BA) 737 MAX aircraft. This accomplishment highlights the growing capabilities of India's MRO service providers.
The surge in aircraft acquisitions by Indian carriers is contributing to the heightened need for MRO services. With an anticipated requirement for hundreds of significant maintenance checks annually, the sector is gearing up for an influx of business opportunities. This includes servicing not only commercial fleets but also addressing the maintenance needs of an aging aircraft fleet and expanding defence purchases.
The global aviation landscape is shifting towards Asia, and India is at the forefront of this transition. With passenger traffic in India reaching 341.05 million in FY20 and growing at a compound annual growth rate (CAGR) of 11.13% from FY16 to FY20, the country is well-positioned to accommodate a substantial portion of the world's passengers by 2040.
In response to these trends, international companies like Rolls Royce (LON:RR) and Safran (EPA:SAF) are planning to set up MRO facilities in India, tapping into the burgeoning market. Additionally, Deloitte has predicted a significant growth spurt for the Indian MRO industry over the next decade.
Supporting this growth is the Indian government's commitment to developing domestic MRO infrastructure. The Modi administration has introduced several policies aimed at fostering this sector, including establishing dedicated MRO facilities at major airports in Delhi and Bengaluru. Hindustan Aeronautics Limited (HAL), India's state-owned aerospace and defence company, is expected to play an instrumental role in this development, further underscoring the strategic importance of the MRO industry within India's broader economic landscape.
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