New facility for aircraft maintenance & overhaul in Hyderabad and IAF’s ambition for more fighter jets to redefine Indian aerospace
India’s aerospace sector is undergoing a significant transformation, with two key developments shaping its future: the establishment of CFM International’s $150-million Maintenance, Repair, and Overhaul (MRO) facility in Hyderabad and the Indian Air Force’s (IAF) urgent requirement for new fighter jets to replenish its depleting fleet.
On the commercial aviation front, India’s booming airline industry demands a strong maintenance infrastructure. With over 2,500 orders for CFM’s ‘Leap’ engines — powering Boeing 737 MAX and Airbus A320neo aircraft — localised servicing has become essential. At present, Indian airlines rely on foreign MRO facilities for engine maintenance, leading to high costs and extended aircraft downtime.
To address this, CFM International — a joint venture between France’s Safran Aircraft Engines and US-based GE Aerospace — is setting up an advanced MRO facility in Hyderabad. Scheduled to be operational by late 2025, this investment aims to reduce maintenance costs for airlines while enhancing turnaround times. The facility will also help develop a skilled workforce through specialised training centers in Hyderabad and Bengaluru. Hyderabad, already home to leading aerospace companies such as Airbus, Boeing, Lockheed Martin, and Tata Advanced Systems, is steadily emerging as a key aviation hub.
While civil aviation infrastructure is expanding, the IAF faces a pressing challenge in keeping its fleet combat-ready. The force urgently needs to induct 35-40 new fighter jets annually to replace aging aircraft like the Mirage 2000, MiG-29, and Jaguar, which are nearing the end of their service life.
Air Chief Marshal V R Chaudhari recently underscored this need, pointing out that HAL’s commitment to delivering 24 Tejas Mark-IA fighter jets in 2025 falls short of the IAF’s annual requirement. To bridge this gap, the IAF is advocating for increased private sector participation in defence manufacturing. Companies like Tata Advanced Systems could play a crucial role in ramping up production, potentially adding 12-18 additional fighter jets annually to the IAF’s fleet.
In parallel, India is also pursuing a mix of indigenous and foreign fighter jet acquisitions. The Government is considering additional Rafale fighter jet orders while accelerating the development of the Tejas Mark-2, a more advanced version of its indigenous fighter jet programme. The Multi-Role Fighter Aircraft (MRFA) tender, aimed at acquiring 114 new jets, has drawn interest from global contenders such as Boeing’s F-15EX, Saab’s Gripen, Dassault’s Rafale, and Russia’s Sukhoi Su-35.
These parallel developments highlight India’s broader aerospace ambitions, both in commercial and defence sectors. With the ‘Make in India’ initiative driving increased foreign direct investment (FDI) in defence and encouraging private sector involvement, the country is positioning itself as a rising force in global aviation manufacturing.
The growing aerospace industry has already seen major milestones, including the Tata-Airbus partnership for manufacturing the C295 transport aircraft and HAL’s expansion into helicopter production. India’s push into drone and UAV development is also gaining momentum, with strategic collaborations involving Israel and the United States bolstering the country’s capabilities in unmanned aerial systems. As India strengthens its aviation infrastructure, the next decade will be crucial in determining its ability to achieve self-reliance in aerospace manufacturing. With CFM’s MRO facility set to improve commercial aviation efficiency and the IAF pushing for a faster pace in fighter jet production, the country is steadily charting its path to becoming a formidable global aerospace hub.
