Indian Proactive federal Minister for Civil Aviation, Rammohan Naidu recently emphasized the government’s commitment to establishing India as a premier global MRO destination.
The recent order by Indian domestic airlines for over 1,100 aircraft is expected to double the size of India’s MRO industry from $2 billion to $4 billion over the next seven years. Indian Proactive Federal Minister for Civil Aviation, Rammohan Naidu recently emphasized the government’s commitment to establishing India as a premier global MRO destination during his address in the Indian parliament on 8th August 2024.
India is aiming to become a global aviation hub and This growth is fueled by India’s strategic geographical advantage, positioning it as a competitive player in the global MRO sector.
However, only 15-20% of this market is currently being serviced locally while 80-85% is serviced overseas. the India Minister, Rammohan Naidu has Addressed these challenges faced by the Indian MRO sector.
A landmark GST reform by The government of India has unified rates for aircraft parts, reducing them to a uniform 5% IGST. This significant change, effective from July 15, 2024, simplifies taxation and is expected to drive the MRO industry towards its $4 billion target by 2031.
While Addressing the concerns raised regarding the challenges faced by the MRO sector, The young Indian Federal Minister, Rammohan Naidu stated his vision, “We are not only focusing on the needs of Indian airlines but also aiming to attract international carriers to use our MRO services, including in strategic locations like Thiruvananthapuram.”
The Minister addressed concerns regarding the MRO industry’s integration into global value chains, stating that efforts are actively underway to align Indian MRO facilities with international standards. “We are committed to ensuring that our MRO sector aligns with global practices, making India a preferred destination for international airlines.”
Also Read: LOT Polish Airlines takes delivery of First Embraer E195-E2
With these strategic moves, India is set to leverage its growing aviation market and emerging MRO capabilities to establish itself as a key global player.
