Blitz Bureau
Prime Minister Narendra Modi’s address at the 81st IATA Annual General Meeting in New Delhi did more than spotlight India’s ascent in global aviation — it laid out a strategic shift aimed at turning India into a powerhouse not just of air traffic, but of aviation infrastructure, maintenance, and innovation. A crucial pillar of that vision is the ambition to make India a global hub for aircraft Maintenance, Repair, and Overhaul (MRO) services.
India’s aviation story has long been defined by rapid passenger growth, increasing connectivity, and expanding infrastructure. But PM Modi’s pitch at the IATA Summit emphasised a deeper transformation — one where India moves from being a service consumer to a service creator in the global aviation value chain. The focus now turns sharply toward end-to-end capabilities: from designing and financing aircraft to maintaining and overhauling them within Indian borders.
At present, a significant portion of India’s aircraft fleet is sent abroad — mainly to Southeast Asia and Europe — for regular and heavy maintenance. This has created an annual foreign exchange outflow of over $2 billion. The Modi Government has recognised this economic inefficiency and is actively working to reverse it.
The proposed reforms include tax rationalisation, easing customs duties on imported parts, and enabling long-term leasing through hubs like GIFT City in Gujarat. These steps are meant to attract global OEMs and MRO providers to establish base operations in India. Already, regulatory clarity and incentives have begun to draw attention from major players in the sector.
Moreover, India offers competitive advantages: a large and skilled engineering workforce, growing domestic fleet size, low labour costs, and a central geographic location. These factors position the country uniquely to offer high-quality, cost-effective MRO services not only for Indian carriers but also for airlines across Asia, the Middle East, and Africa.
The Prime Minister’s emphasis on building a “Design in India, Maintain in India” ecosystem also aligns with the larger Atmanirbhar Bharat (self-reliant India) mission. The development of in-country MRO hubs is seen not only as an economic opportunity but as a matter of national strategic capacity.
However, while the vision is compelling, execution will be key. Challenges remain in terms of regulatory harmonisation with global aviation standards, infrastructure ramp-up, and the ability to deliver consistent service quality. International MRO companies will look for long-term policy stability before committing capital.
What is clear is that India is no longer content with being a passive node in the global aviation network. With targeted reforms and clear policy direction, it is positioning itself as a full-spectrum aviation hub. If the MRO ecosystem takes flight as planned, India could soon be servicing not just its own growing fleet, but a substantial share of the world’s commercial aircraft as well.
PM Modi’s message is now unmistakable: India doesn’t just want to fly — it wants to build the wings.