India’s aircraft MRO market to reach $4 billion by 2031: Rammohan Naidu

Hyderabad: India’s aircraft Maintenance, Repair and Overhaul (MRO) market is poised to grow to $4 billion by 2031, opening up massive opportunities for investment, employment and technology transfer, Union Civil Aviation Minister K Rammohan Naidu said on Wednesday.

He was speaking at the inauguration of French aerospace major Safran’s MRO facility in Hyderabad.

Hyderabad facility to strengthen ‘Make in India’ push

The Safran Aircraft Engine Services India (SAESI) facility, scheduled to become operational in 2026, will play a pivotal role in strengthening India’s indigenous capabilities in aircraft engine maintenance.

The minister said the project aligns with the Centre’s vision of making India a preferred global destination for aircraft maintenance services.

$15 billion forex savings expected

Rammohan Naidu said that expanding MRO activities within the country would result in foreign exchange savings of up to $15 billion over the coming years, as airlines will no longer need to send aircraft abroad for servicing.

He added that reduced maintenance costs for airlines would help lower operational expenses and benefit air passengers in the long run.

India among the fastest-growing aviation markets

Highlighting the rapid expansion of the civil aviation sector, the minister said India is one of the fastest-growing aviation markets globally, with domestic carriers having over 1,500 aircraft on firm order.

This surge in fleet size is expected to drive sustained demand for advanced MRO services across the country.

MRO sector to grow at 8.9% CAGR

Asserting that India is steadily emerging as a global aviation hub, Rammohan Naidu said the MRO industry is projected to expand at a compound annual growth rate of 8.9 per cent and reach $4 billion by 2031, driven by policy support, rising air traffic and the growing fleet strength of Indian airlines.