India's MRO Boom: Policy Overhaul Expands Facilities from 96 to 166

Through a calculated series of fiscal and regulatory manoeuvres, the Indian government has successfully expanded its Maintenance, Repair, and Overhaul (MRO) facilities from 96 in 2014 to 166 in 2025.

The turning point for the sector arrived on July 12, 2024, with a landmark tax reform. By implementing a uniform 5% IGST on imported aircraft parts, tools, and testing equipment, the government dismantled a convoluted "inverted duty structure."

This move levelled the playing field, making it cheaper for domestic firms to source high-tech components and ensuring that Indian MROs can compete with international hubs on price.

Beyond tax breaks, the Ministry of Civil Aviation has addressed structural bottlenecks that previously grounded the sector's potential.

Earlier in September 2021, the Ministry issued comprehensive MRO guidelines that removed royalties on land allotments at Airports Authority of India (AAI) airports and introduced greater transparency in the allocation process. These changes have helped lower operational expenses and encouraged new investments.

The Union Budget 2024-25 added further momentum by extending the export period for repair-bound goods from six months to one year and the re-import period for warranty repairs from three to five years. These extensions provide much-needed flexibility to MRO facilities handling international aircraft.

To ease human resource constraints, the Visa Manual has been amended to facilitate Business Visas and Temporary Landing Permits for foreign pilots and crew arriving specifically for MRO-related work. This change is expected to smooth operations and reduce turnaround times for high-value maintenance contracts.

The government isn't just focusing on the hangars. By actively courting Original Equipment Manufacturers (OEMs) to set up shop within India, the strategy aims to create a self-sustaining loop of manufacturing and maintenance.

This shift is critical. As Indian carriers place record-breaking aircraft orders, keeping those planes in the air, and doing so on Indian soil, prevents massive "forex drainage" and creates a surge in high-skill technical jobs.

With its strategic location between Europe and Southeast Asia, India is positioning itself as the primary maintenance destination for the continent. The jump to 166 facilities is more than just a number; it is a signal of investor confidence and a roadmap for India's ascent as a global aviation powerhouse.

These initiatives have laid a strong foundation for MRO in India, making the country a viable and competitive global hub, official sources said.

With its strategic location, growing domestic market, and now business-friendly policy environment, India is well on its way to becoming a preferred destination for aircraft maintenance in Asia and beyond.

- ANI