According to recent pronouncements from the Ministry of External Affairs (MEA), India is moving closer to its goal of becoming a global center for the Maintenance, Repair, and Overhaul (MRO) industry. Given Singapore’s well-established position in the industry, the MEA pledged to work with Singapore to improve India’s MRO capabilities.
With a compound annual growth rate (CAGR) of 8.9%, the Indian MRO market, which is presently valued at about $1.7 billion, is expected to reach $4 billion by 2031, greatly above the global average of 5.6%. The need for extensive maintenance checks and the growing size of the fleet are the key drivers of this expansion.
In order to increase investment in MRO infrastructure and streamline tax systems, the Indian government has implemented significant reforms. These changes are necessary to increase the competitiveness of domestic MRO services in comparison to well-established hubs like Singapore, which has long controlled the market thanks to its economical and effective services.
To strengthen its MRO capabilities, India is seeking to form alliances with Original Equipment Manufacturers (OEMs) and other stakeholders. Partnerships with businesses such as Hindustan Aeronautics and Airbus
Notwithstanding the positive outlook, a number of obstacles still need to be overcome, such as the requirement for certificates from international aviation agencies such as the FAA and EASA and high operating costs brought on by intricate tax arrangements. For India to increase its market share in the global MRO industry, these problems must be resolved.
Positive government policies, strong alliances, and substantial market potential all contribute to India’s goal of becoming a major force in the global MRO industry.
In addition to meeting its domestic MRO demands, India hopes to draw in foreign airlines looking for dependable maintenance services by concentrating on improving local skills and cutting operating costs.
The partnership with Singapore may be a crucial step in accomplishing this objective and establishing India as a major rival in the world aviation market.
