Page 5 - mro-business-today-15-08-2024
P. 5
INDIA’S SPECIAL STORY
July 15, 2024, simplifies the taxation The Indian MRO market, currently
process and is projected to propel the estimated at $800 million, is expanding
MRO industry towards a $4 billion valu- at an annual rate of approximately 8%,
ation by 2031,” the Minister stated. compared to the global average of 4%.
Support and Incentives for MRO Facili- According to CRISIL, India’s annual MRO
ties: The Ministry of Civil Aviation will revenue is forecasted to grow more
facilitate the stakeholders across India than threefold by the fiscal year 2028,
to establish MRO facilities for both do- reflecting the sector’s robust growth
India’s geographical mestic and international airlines. potential.
advantage allows us to Customs Duty Exemption and FDI Additionally, the defence MRO market
offer MRO facilities to Facilitation: As part of the announce- is expected to be worth $3bn by 2031
to service India’s fleet of 2000+ aircraft.
ments in the Union Budget, the
numerous international government has extended the period The defence MRO market will be driven
airlines, making us for exporting goods imported for by India’s ageing fleet which includes
a competitive global repairs from 6 months to 1 year. The certain aircraft classes such as the Mig-
21s that are 30+ years old.
customs duty on tools and toolkits has
player. already been exempted. Additionally, The Indian Civil Aviation minister, said,
the government has allowed 100% “India’s geographical advantage allows
Foreign Direct Investment (FDI) via us to offer MRO facilities to numerous
the Automatic Route for MROs, aimed international airlines, making us a com-
at achieving the best possible Turn petitive global player.”
Around Time (TAT).
Leading Players and Industry Landscape
Current Market Dynamics and At present, only Air India and Jet
Projections Airways operate in-house MRO fa-
www.mrobusinesstoday.com 15 Aug, 2024 5
