SOURCE: AFI
India’s defence maintenance, repair, and overhaul (MRO) sector is on the verge of a significant transformation, driven by strategic partnerships between global aerospace giants and domestic firms. Over the next five years, the sector is set to establish itself as a regional hub for military aviation maintenance, supported by policy reforms, a maturing industrial ecosystem, and an increasing reliance on indigenous capabilities.
The partnerships between global leaders like Lockheed Martin and Boeing with Indian companies such as Tata Advanced Systems Ltd (TASL) and AI Engineering Services Ltd (AIESL) are pivotal. These collaborations aim to create state-of-the-art MRO facilities that cater to both domestic and regional needs. The focus is not just on servicing Indian defence platforms but also on attracting international clients from the Asia-Pacific and Middle East regions, leveraging India’s cost-effectiveness and skilled workforce.
India’s push for self-reliance in defence manufacturing, encapsulated in the Atmanirbhar Bharat initiative, has played a crucial role in fostering the growth of the MRO sector. Key policy reforms, such as reduced GST rates for MRO services and simplified customs procedures, have incentivized global players to invest in India. Additionally, defence procurement policies increasingly mandate local maintenance as part of contracts, ensuring long-term support for the indigenous MRO ecosystem.
The participation of Indian private and public sector companies is a cornerstone of the sector’s growth. Firms like Hindustan Aeronautics Ltd (HAL) are expanding their MRO capabilities for platforms such as Sukhoi-30MKI fighters and transport aircraft. Simultaneously, private players are stepping in with cutting-edge technologies and processes. For example, TASL has already established a comprehensive facility for servicing Boeing’s C-17 Globemaster and P-8I maritime surveillance aircraft.
The next five years will witness the establishment of new MRO facilities across India. These facilities will cater to a wide range of platforms, including combat aircraft, transport planes, and unmanned aerial systems. The development of specialized centres for advanced avionics, radar systems, and propulsion units will further enhance India’s capabilities. Additionally, the government’s emphasis on dual-use technologies will allow these facilities to cater to both defence and civil aviation needs, maximizing resource utilization.
The expansion of the MRO sector will significantly boost opportunities for local suppliers. Indian MSMEs are expected to play a vital role in providing components, spares, and subsystems, reducing dependence on imports. Partnerships with global OEMs will also facilitate technology transfers, enabling local companies to scale up their expertise and integrate into the global supply chain.
Positioning India as a regional MRO hub holds strategic importance. It reduces the turnaround time for defence platforms, enhances operational readiness, and saves foreign exchange spent on overseas maintenance. Moreover, offering MRO services to friendly foreign nations strengthens defence diplomacy and opens up additional revenue streams.