India’s aircraft MRO industry to double from $2 bn to $4 bn in next 7 years: Minister
New Delhi, Aug 9 : The recent order by domestic airlines for over 1,100 aircraft is expected to double the size of India's MRO aviation business from $2 billion to $4 billion over the next seven years, Union Minister for Civil Aviation Rammohan Naidu informed Lok Sabha.
The minister said that the government was not only focussing on the needs of Indian airlines but also aiming to attract international carriers to use the country’s MRO (maintenance repair and overhaul services), including in strategic locations like Thiruvananthapuram.
The government has recently announced the unification of GST slabs for MRO components and services, which will facilitate the integration of domestic MROs with global value chains, he observed.
He emphasised the government's commitment to creating a robust environment for both domestic and international airlines to access world-class MRO facilities in India.
The minister said India's geographical advantage allows the country to offer MRO facilities to numerous international airlines, which would make the country a competitive global player.
Naidu underlined key initiatives taken by the Ministry of Civil Aviation to strengthen the MRO sector.
The minister addressed concerns about the MRO industry's integration into global value chains, affirming that efforts were underway to harmonise Indian MRO facilities with international standards.
The minister also highlighted the potential of the Production Linked Incentive (PLI) scheme to drive growth.
He said that depending on industry demand, the government could consider extending a PLI scheme to the MRO industry to further accelerate its development.
He pointed out that as part of the announcements in the Union Budget, the government has extended the period for exporting goods imported for repairs from six months to one year.
The customs duty on tools and toolkits has already been exempted.
Additionally, the government has allowed 100 per cent Foreign Direct Investment (FDI) via the Automatic Route for MROs, aimed at achieving the best possible Turn Around Time (TAT).