India’s Maintenance, Repair, and Overhaul (MRO) and aerospace manufacturing sectors are gaining strong momentum, driven by significant domestic growth and deepening global partnerships.
According to Crisil Ratings, India’s domestic MRO industry is projected to grow 50% and surpass ₹4,500 crore by FY26. This rapid expansion is underpinned by a 20–25% increase in the fleet size of domestic airline operators, spurred by new aircraft acquisitions and grounded planes returning to service. Indian MRO providers offer essential services such as line checks (before every flight), airframe checks (every 12–18 months), and redelivery checks (at the end of aircraft leases). The resulting increase in operational scale, along with stable debt levels and favourable policies—such as reduced GST on components and services—is expected to boost profitability, enhance credit profiles, and ease working capital pressures.
Strengthening India’s aerospace capabilities, Safran Aircraft Engines and Hindustan Aeronautics Limited (HAL) signed a major contract at Aero India for the production of turbine-forged parts for LEAP engines. This agreement builds on their successful collaboration on the Shakti engine and supports the joint venture’s focus on LEAP and M88 engine components. Safran is actively expanding its aerospace ecosystem in India, operating five production sites across Hyderabad, Bangalore, and Goa, and is on track to open a dedicated LEAP engine MRO facility in Hyderabad by 2025. The partnership also includes plans to deepen military cooperation on the M88 engine, reinforcing Safran’s commitment to both civil and defence aviation sectors in India.
In another strategic move, Bharat Forge has partnered with Liebherr-Aerospace & Transportation to establish an advanced aerospace manufacturing facility in Pune. The facility will feature a state-of-the-art ring mill and cutting-edge forging and machining technologies, enabling the production of high-precision components, including landing gear parts. This collaboration aims to strengthen India’s aerospace supply chain and deliver globally competitive components for both domestic and international markets.
Key Benefits for India’s MRO Industry
- Surging Domestic Demand: The expansion of airline fleets is creating sustained demand for maintenance services.
- Operational Scale: Growth in MRO volume is boosting profitability and strengthening the financial stability of providers.
- Global Collaboration: Partnerships with companies like Safran and Liebherr are introducing advanced technologies and practices.
- Policy Support: Reduced GST on MRO services improves cost efficiency and competitiveness with international players.
- Infrastructure Expansion: New MRO and manufacturing facilities are enhancing India’s self-reliance and capacity in aerospace.
- Job Creation & Skill Development: The sector is generating high-skilled employment and building technical expertise.
With these developments, India is emerging as a vibrant, globally connected MRO and aerospace manufacturing hub, well-positioned to serve both civil and defence aviation needs.
Links to articles:
Indian MRO industry to clock 50% growth over FY2024 – Crisil
Bharat Forge partners Liebherr-Aerospace & Transportation to set up aerospace plant in Pune
Safran partners with HAL to boost LEAP Engine part production in India
AVM Rajiv Gandotra
Great initiatives.