MRO boom in India: opportunities for European aviation suppliers and technology providers
Lufthansa Technik, MTU and Safran are investing along the Indian MRO value chain. As a result, India is finally moving into the focus of the global aviation aftermarket. For medium-sized European suppliers, the question is not so much whether the market will develop – but how resilient their own local operational set-up is.
India is increasingly positioning itself as a major player in the global aviation ecosystem. The drivers are rapidly growing air traffic, a massively expanding fleet and the political goal of keeping more maintenance and aftermarket value creation in the country. The decisive factor here is not just additional MRO capacity, but the ability to make parts, materials and repairs reliably available.
Market, regulation and investments
The regulatory framework has improved noticeably. The opening of the MRO sector to 100% foreign direct investment and the reduction of GST on MRO services from 18% to 5% are fundamentally changing the economic logic of the location.
At the same time, substantial industrial investments are flowing into the country. Safran is building a LEAP engine MRO plant in Hyderabad with an investment volume of around EUR 200 million, which is scheduled to go into operation from 2026. Lufthansa Technik is expanding its activities with Indian airlines and making targeted investments in local components and material availability. EME Aero, the joint venture between Lufthansa Technik and MTU, is also further expanding its capacities, training and material concepts.
These investments are being made in a market that is exceptionally dynamic. Indian airlines have around 1,700 aircraft in their order books. At the same time, only around 15-20% of Indian MRO demand is currently generated in the country itself. According to IATA, over 150 aircraft were temporarily out of service at the end of 2024 – primarily due to global shortages of engines, spare parts and MRO slots. The bottleneck is therefore less technical than operational in nature.
Supply chain as the strategic core of the MRO business
The main bottleneck in the Indian MRO market lies less in pure maintenance capacity than in the upstream supply of parts, materials and approved repairs. Over 90% of MRO supplies are still imported. Dependencies on international supply chains, volatile delivery times and complex customization, classification and submission processes extend turnaround times and tie up working capital.
For airlines and MROs, the focus is shifting significantly: away from the question of whether a repair is technically possible and towards the question of when the required part or the approved repair is actually available. The ability to deliver becomes the real differentiating factor.
For European suppliers, this means a change of perspective. Resilient operational models are required: local spare parts stocking, pooling and rotables concepts, clearly defined repair loops and viable second-source strategies. As MRO volumes increase, the bottleneck inevitably shifts from repair capacity to parts availability and controllability of material flows.
A local footprint is therefore becoming a decisive lever. Authorized distribution, repair stations with OEM and DGCA approval and – where it makes regulatory sense – local production or assembly of selected components as part of “Make in India” are increasingly becoming a prerequisite for reliable delivery commitments. For OEM-related suppliers, this is about control over aftermarket performance, quality and margins; for distributors, it is about proximity to the MRO, speed of response and operational reliability.
Transparency and controllability through digital processes
The rapid capacity expansion in India makes it possible to set up new MRO structures digitally right from the start. The real leverage lies not in individual tools, but in a consistent, audit-capable process landscape.
Only when requirements, inventories, repair capacities, customs status and compliance requirements are transparent across multiple levels can turnaround times be shortened and AOG risks actively managed. Data thus becomes the common language between MROs, suppliers, airlines and regulators.
End-of-life management as the next stage of value creation
As the Indian MRO market matures, end-of-life management is coming more into focus. Repair instead of replace, used serviceable material and certified reuse and recycling are evolving from an ESG issue to an instrument of operational stability.
For European OEMs and suppliers, this opens up the opportunity to establish standards for teardown processes, traceability, repair engineering and digital component histories in India at an early stage – and thus have a lasting impact on availability, lead times and costs.
Qualification as a stabilizing factor
The shortage of skilled workers remains a structural bottleneck. Although India has several thousand licensed aircraft maintenance engineers, demand is growing faster than training capacity and experience – particularly in engine MRO, avionics and composite repairs. Migration to the Middle East is further exacerbating the situation.
Qualification is therefore becoming an integral part of stable operating models. Training approaches, train-the-trainer programs and technology-based support are increasingly determining whether repair and delivery commitments can be met.
What determines success or failure
The Indian market does not reward speed, but diligence. DGCA approval processes often take 12 to 18 months. Customs and tax structures are complex, working capital requirements are often underestimated. Certification is not a downstream compliance step, but an integral part of a functioning business model.
The right time is now
India is no longer an emerging market in aviation. Demand is growing faster than local capacity. The major OEMs have set their course – now the ability to make parts, repairs and expertise reliably available locally is crucial.
The Indian MRO market is not won by those who have the best product, but by those who bring it to market in a deliverable, certified and operationally reliable manner.
Would you like to know how your company can benefit in concrete terms? Which entry strategy is the right one for your technology? And how you can manage skilled labor and supply chain risks right from the start?
Book a no-obligation consultation with our aviation expert Atul Suri – we will show you exactly where your opportunities lie.
