India could save up to $15 billion in foreign exchange expenses in the coming years by establishing itself as a global hub for aircraft MRO activities, Civil Aviation Minister K Rammohan Naidu said on Wednesday.
Speaking at the inauguration of French major Safran's MRO (maintenance, repair and overhaul) facility in the city, Naidu said the country will become a preferred destination for aircraft maintenance activities.
India is one of the world's fastest-growing civil aviation markets, and domestic airlines have placed orders for more than 1,500 aircraft. The Safran Aircraft Engine Services India (SAESI) facility in the city will be operational in 2026, and it will be a major boost to the country's indigenous capabilities in the fast-growing aviation sector.
Highlighting the domestic aviation sector's growth potential, Naidu said the country's MRO market is projected to hit $4 billion by 2031, with a growth rate of 8.9%.
Currently, a majority of MRO activities for Indian carriers' planes are done overseas. Against this backdrop, the minister said that carrying out aircraft MRO activities within the country will help save up to $15 billion in foreign exchange in the coming years.
The cost savings of the airlines will be passed on to passengers, he added. Going by estimates, engine works account for around 45% of the overall MRO market. The government has been working on initiatives to boost the MRO ecosystem in India.
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