Boeing Pushes Component Makers For India MRO Expansion

US planemaker Boeing is encouraging its component suppliers to establish maintenance, repair, and overhaul (MRO) services in India, the world's fifth-largest aviation market.

"We have seen engine MRO coming in, and we have encouraged our component suppliers to establish MROs in India," Salil Gupte, Boeing India president, told NDTV Profit.

He said a vast majority of non-leased return checks of aircraft and line maintenance are already happening in India. Boeing has partnerships with domestic players like GMR Airports Ltd., Air Works India Engineering Pvt. Ltd., and AI Engineering Services Ltd.

The Indian MRO industry is projected to become a $4 billion industry by 2030, as per the government. It has allowed 100% Foreign Direct Investment via the automatic route for MRO.

Gupte said almost 3,000 new airplanes will be coming to India over the next 20 years as the country rapidly expands its airport infrastructure to connect more of its towns and cities. This will require more MRO activities within the country.

Geographically, India is strategically located between Europe and Southeast Asia.

"We expect a continued ramp-up of deliveries. A lot of work is going on to develop the aviation ecosystem in India," he said.

In January 2024, the US company inaugurated a 36,000-square-foot India Distribution Center in Uttar Pradesh to streamline spare parts availability for commercial customers.

Beyond demand for aeroplanes, the Boeing executive highlighted growing manufacturing activity in the country.

"India is an important part of the global supply chains. A historical strength in engineering has been combined with manufacturing over the last 10-15 years," he said.

The company already sources many of its key components from Indian small and medium enterprises.

Even though Boeing's bid to develop a fighter jet assembly line in partnership with the Mahindra Group and Hindustan Aeronautics Ltd. did not materialise, Gupte said the company is hopeful for future contracts in the defence space.

Tariffs and trade on defense products have, since the times of the Cold War, been a part of the larger geopolitical framework. The Boeing executive also stressed that the aerospace sector has been kept out of the tariff purview for over 45 years, given its critical role in national infrastructure and security.

"There has been a zero tariff environment in aerospace and defence since 1979 around the world," Gupte said, in response to India-US trade frictions.