India's aviation sector stands at a transformative crossroads. The nation's commercial fleet is set to expand from 1,300** aircraft today to 2,600 by 2035. This remarkable growth trajectory positions India world’s busiest passenger and cargo markets.
Yet beneath this progress lies a critical challenge. Nearly 90 percent of India's Maintenance, Repair, and Operations (MRO) requirements valued at approximately USD 3.7 billion are currently outsourced overseas, creating a significant annual foreign exchange outflow. This represents both a vulnerability and an extraordinary opportunity for the industry.
Post privatisation of Air India in 2022, India witnessed a surge in aircraft orders, including commitments for next-generation wide-body aircraft like the A350, B787-10, and B777X. This created an urgent imperative to expand MRO infrastructure at an unprecedented scale. This growth demands establishing state-of-the-art facilities equipped with cutting-edge technological interventions from inception.
AI Engineering Services Limited (AIESL), India's largest MRO provider, operates 14 hangars across seven major bases, including five wide-body hangars. AIESL also has three functional Engine Shops and Component Overhaul shops and has certifications from DGCA, EASA, and FAA for its various facilities. The company maintains zero debt and generates 40 percent EBITDA margins, demonstrating the commercial viability of domestic MRO operations. This robust foundation provides the platform for rapid expansion to meet surging demand.
Heavy maintenance checks will increase from 250 annually to 400 by 2030, while engine shop visits are expected to rise from 300 in 2025 to 1,200 by 2035. Capturing this demand domestically could save billions in annual foreign exchange while creating over 50,000 skilled jobs and avoid logistics, transportation, and customs/tariffs costs and delays.
The expansion of India's MRO capacity presents a unique advantage: the opportunity to build greenfield facilities incorporating cutting-edge technologies from inception. Predictive maintenance powered by the Internet of Things (IoT) and artificial intelligence can reduce costs by up to 25 percent while minimizing aircraft-on-ground events.Additive manufacturing enables on-demand production of spare parts, while drones and robotics improve inspection safety and consistency.
India must significantly expand Part 147 training capacity to upskill engineers and technicians, extending to pilots, cabin crew, and ground staff. This comprehensive aviation services ecosystem enhances airline competitiveness through improved turnaround times and lower operational costs.
Achieving global MRO hub status requires progress on Bilateral Aviation Safety Agreements (BASA) between DGCA and international bodies like EASA to attract lessor confidence and facilitate domestic lease return checks. Structured partnerships with original equipment manufacturers can overcome intellectual property barriers in advanced engine overhaul and component repair.
The opportunity extends beyond commercial aviation. Defence maintenance demand is projected to reach USD 3 billion by 2031, while emerging segments including business aviation, helicopters, drones, air taxis, and VTOLs aircraft create diversified revenue streams.
India's vision for 2035 is ambitious yet achievable: to capture 80 percent of the domestic MRO market and establish the country as the world's third-largest MRO hub. This requires coordinated action across infrastructure modernisation, regulatory alignment, technology adoption, and workforce development.
For global aviation leaders, India represents a strategic opportunity. The scale of demand, supportive government policies including reduced GST on MRO inputs and simplified Foreign Direct Investment (FDI) norms, and a growing ecosystem of capable domestic providers create conditions for meaningful partnerships.
The transition from aviation growth to aviation leadership is underway. The question for the global industry is not whether India will achieve MRO self-reliance, but how quickly, and which international partners will participate in building this capacity.
Author: Sanjay Gupta
Head of Marketing, AIESL
*Find out more about AIESL's engagement in the IATA's Strategic Partnerships Program on the partners directory.
** All figures in the article, unless stated otherwise, were taken out of Joint report by MoCA abd Invest India: “Cleared for Takeoff – Unleashing India’s MRO potential” January 2026.
