Quick Takeaways
- India’s MRO opportunity is estimated at USD 4+ billion by 2031.[1]
- India’s MRO market is projected to grow at 10.6% CAGR through 2035.[1]
- The three core segments are Airframe MRO, Engine MRO and Landing Gear MRO.[1]
India’s aviation sector is entering a period of sustained expansion, supported by rising air travel, fleet additions and growing airport capacity. As the number of aircraft operating in the country increases, so is the need for reliable maintenance, repair and overhaul (MRO) capabilities. This is placing MRO in India at an important point of transition, with the sector increasingly becoming a critical part of the country’s wider aviation ecosystem.
According to the Invest India–Ministry of Civil Aviation MRO Investment Opportunity report, India’s aviation market is projected to grow at a 10.6% CAGR through 2035. Together, these trends point to sustained demand for aircraft maintenance and related services.[1]
India’s MRO Market Is Entering a New Phase
The scale of India’s aviation expansion is creating a larger market for maintenance and overhaul services. The Invest India report estimates India’s MRO opportunity at USD 4+ billion by 2031, reflecting the growing requirement for maintenance capacity as the domestic fleet expands.[1]
The development of the MRO industry is closely linked to the growth of the aviation fleet. Every additional aircraft entering service requires periodic inspections, component maintenance, repairs and overhauls throughout its operating life. As a result, MRO is becoming increasingly important not only for aircraft availability but also for the broader efficiency and resilience of the aviation ecosystem.
India’s growing fleet, expanding airport network and developing aviation infrastructure therefore provide a strong foundation for the next phase of MRO aviation in the country.
Fleet Expansion Is Driving Long-Term MRO Demand
Fleet expansion is one of the central drivers of India’s MRO potential. With 1,800+ aircraft on order and 1,400+ fleet additions projected by 2030, the country is preparing for a significant increase in aircraft capacity.[1]
This expansion will increase the requirement for scheduled maintenance, heavy checks, structural repairs, engine overhauls and component servicing. It will also support demand for specialised capabilities across aircraft maintenance and related technical services.
The scale of future fleet additions provides greater visibility for the development of domestic MRO capacity. At the same time, a larger installed aircraft base can support a broader ecosystem of maintenance facilities, technical services and specialised suppliers.
Policy Reforms Are Strengthening the MRO Ecosystem
Policy reforms have played an important role in improving the operating environment for the MRO industry. India permits 100% Foreign Direct Investment through the automatic route for MRO, providing a liberal investment framework for the sector.[2]
The Government has also introduced a uniform 5% IGST rate on imports of aircraft parts, components, testing equipment, tools and tool-kits, subject to specified conditions. Other measures include simplified clearance procedures for parts, customs duty exemptions on tools and tool-kits, and extended timelines for certain repair-related imports and re-imports.[2]
Furthermore, the Ministry of Civil Aviation has introduced measures to make land allocation for MRO facilities at Airports Authority of India airports more transparent and predictable. The Ministry’s annual report notes that the MRO policy provides for zero royalty and liberalised land rentals, while the lease period for land has been increased from three years to 30 years.[3]. Together, these measures are helping establish a more supportive policy and infrastructure framework for MRO in India.
Three Core Segments Define the MRO Opportunity
The Invest India report identifies three core MRO segments, each with different capital requirements and ramp-up profiles: Airframe MRO, Engine MRO and Landing Gear MRO.[1]
Airframe MRO
Airframe MRO covers heavy maintenance checks, including C and D checks, along with structural repairs and aircraft modifications for narrowbody and widebody aircraft.
According to the report, the segment has a capital intensity of 100% as the baseline, with a projected break-even period of Year 4.[1]
As India's aircraft fleet expands, airframe maintenance will remain an essential component of the country's MRO capacity, particularly for facilities capable of handling both narrowbody and widebody aircraft.
Engine MRO
Engine MRO represents a more specialised segment, covering full engine overhauls, performance restoration and component repair.
It places engine MRO’s capital intensity at 250%–410%, with a projected break-even period of Year 5.[1]
The segment therefore requires deeper technical capabilities and higher capital deployment. However, the growing aircraft fleet also increases the long-term requirement for engine maintenance and overhaul capabilities.
Landing Gear MRO
Landing Gear MRO covers complete overhaul, chrome plating, non-destructive testing (NDT) inspection and actuator repair for commercial aircraft landing systems.
The report places capital intensity for this segment at 120%–140%, with a projected break-even period of Year 3.[1]
This segment adds another specialised layer to the MRO ecosystem, supporting the maintenance requirements of commercial aircraft as fleet numbers increase.
Infrastructure and Capabilities Are Supporting Growth
MRO development depends on more than aircraft demand. It also requires appropriate airport infrastructure, maintenance facilities, technical equipment, regulatory capabilities and access to specialised skills.
India’s MRO policy framework has progressively addressed several of these requirements. The Ministry of Civil Aviation notes that regulatory and policy measures have included simplified parts clearance, customs duty exemptions on tools and tool-kits, provisions for foreign aircraft undergoing MRO work in India and measures supporting foreign currency borrowing and lending for MRO facilities.[3]
These measures are contributing to an ecosystem in which aircraft maintenance can increasingly be undertaken within India rather than relying on facilities outside the country.
Building a Stronger MRO Aviation Ecosystem
The development of MRO aviation capabilities also has implications beyond maintenance facilities themselves. A growing MRO ecosystem can support specialised engineering, component servicing, technical training and related aviation services.
The Government has also highlighted the importance of developing India as a global aviation hub, with MRO forming an important part of that ecosystem. In 2024, the Ministry of Civil Aviation stated that policy measures were aimed at strengthening the domestic MRO sector and supporting India's development as a global aviation hub.[4]
As fleet expansion continues, the ability to build capabilities across different MRO segments will become increasingly important. Airframe, engine and landing gear services each require different levels of infrastructure, capital and technical expertise, making the development of a diversified MRO ecosystem particularly relevant.
Why MRO in India Matters for the Next Phase of Aviation Growth
India’s aviation growth is creating a larger and more diverse requirement for aircraft maintenance. The combination of a 10.6% projected aviation market CAGR through 2035, 1,800+ aircraft on order and 1,400+ projected fleet additions by 2030 provides the underlying demand base for the MRO opportunity identified in the Invest India report.[1]
At the same time, policy reforms are improving the framework within which MRO facilities can develop. The combination of uniform 5% IGST rate on specified aircraft parts and equipment, simplified procedures and more supportive land-allocation provisions is strengthening the broader ecosystem.[2][3]
The opportunity is therefore not limited to individual maintenance facilities. It encompasses a wider network of technical capabilities and specialised services required to maintain a rapidly expanding aircraft fleet.
Conclusion
India’s aviation expansion is creating a significant requirement for maintenance, repair and overhaul capabilities. With an estimated USD 4+ billion MRO opportunity and substantial aircraft and fleet additions ahead, MRO in India is becoming an increasingly important part of the country’s aviation infrastructure.[1]
The MRO opportunity spans airframe, engine and landing gear services, with each segment presenting distinct capital requirements and operational profiles. Meanwhile, policy reforms covering FDI, taxation, customs, land allocation and regulatory processes are strengthening the foundations of the MRO industry.[1][2][3]
As India’s aviation market continues to expand, the development of a capable and diversified MRO aviation ecosystem will be central to supporting the country's growing aircraft fleet and strengthening its position within the global aviation landscape.
