Hyderabad, Jan 29 (.) Maintenance, Repair and Overhaul (MRO) continues to be a critical pillar of aviation safety and operational efficiency, but India’s MRO sector remains at a nascent stage despite strong growth potential, according to a KPMG-FICCI Knowledge report , “Paving the Future of Aviation in Viksit Bharat @ 2047”, released at the second day of Wings India here on Thursday.
Infrastructure development is gaining momentum, with an engine MRO facility in Hyderabad and new base maintenance facilities by Indian airlines expected to become operational in the coming years, the report said.
Structural challenges remain, as over 95 per cent of engine and component MRO work is still outsourced overseas, largely due to dependence on foreign OEMs and limited certification recognition, it said.
While global MRO services are expanding steadily, India is expected to outpace global growth driven by fleet expansion and policy reforms.
The global aviation MRO industry was valued at around USD 120 billion in 2025 and is projected to reach USD 157 billion by 2035, growing at a CAGR of 3 per cent, the report revealed.
India’s MRO market stands at USD 2.5 billion, accounting for about 2 per cent of the global share, but is expected to grow faster than the global average, it said.
Recent policy measures, including a uniform 5 per cent IGST on imported aircraft parts and equipment and extended export–reimport timelines, have improved cost structures and ease of doing business, it said.
Lack of mutual acceptance of standards between DGCA and global regulators such as EASA and FAA continues to constrain high-value MRO activities within India.
With India’s aircraft fleet projected to reach 3,000 aircraft by 2047, the country has the potential to emerge as a regional MRO hub for South Asia, the report stated.
India’s MRO market is expected to grow to USD 7 billion by 2035, at an estimated CAGR of 11 per cent, supported by domestic fleet growth and policy backing.
The report highlights the need for capability enhancement, global certification alignment, infrastructure investment, and improved access to capital to unlock the sector’s full potential.
. KNR CDS