Engines, OEMs, Delays: Hurdles Still Remain In India’s MRO Growth

Adani Defence Systems and Technologies Ltd (ADSTL) made headlines when it acquired an 85.1% stake in Air Works — India’s largest private sector maintenance, repair and overhaul (MRO) company — at Rs 400 crore in December 2024. The move marked a step towards consolidation in a sector that has long grappled with several challenges.

At the time, ADSTL had said in a statement, “Air Works undertakes base maintenance for narrow-body and turboprop aircraft, as well as rotary aircraft from its facilities at Hosur, Mumbai and Kochi.”

Eight months later, in August 2025, ADSTL took another step towards consolidation. This time, through its venture Horizon Aero Solutions Ltd, and in partnership with Prime Aero Services LLP, it acquired Indamer Technics, yet another private MRO player.

“This consolidation will accelerate our growth and unlock new revenue streams,” said Rajeev Gupta, CEO of Indamer Technics.

With these two acquisitions, Adani put together the largest MRO network in the country. The sector, which has often been dismissed as unviable, now shows promise. Though challenges like OEM reluctance, supply chain issues, tax hurdles and talent crunch still exist.

MRO Matters

India is the world’s third-largest aviation market and is still growing. Airlines have placed record orders — Air India (470), IndiGo (530), Akasa (150), and SpiceJet ( planning fleet expansion).

Yet, on the ground, the MRO sector is lagging. India’s MRO market is projected to grow from $1.7 billion in 2021 to $4 billion by 2031. But India still outsources around 80% of its MRO demand annually to global hubs like Dubai and Singapore.

The price imbalance is stark. Heavy maintenance for widebody aircraft in India costs $1.2–$1.5 million cheaper than Dubai’s $1.6–$2.0 million. Singapore leads with premium quality, charging $1.8-$2.2 million. But India’s turnaround time is much longer, 25–40 days, much slower than Singapore’s 18-28 days.

With the number of passengers increasing and airlines trying to expand, the need and urgency for robust, indigenous MRO infrastructure is intensifying.

Reforms Vs Reality

Indian carriers have long been outsourcing engine and component MRO to global hubs such as Dubai and Singapore, resulting in billions of dollars flowing out annually.

Tax regimes, OEM hesitancy and lack of scale in the domestic market created hurdles historically. Despite policy changes, local capabilities struggled to match international benchmarks in turnaround time, cost-efficiency, and technical depth.

The government has introduced several reforms over the last few years — cutting MRO GST from 18% to 5%, allowing 100% foreign direct investment, customs duty exemptions and Production-Linked Incentive (PLI) support.

However, there continues to be a lag in execution on the ground. OEMs remain cautious, limiting engagement to technician training and minor certifications. OEMs' control over spares and manuals, limited hangar capacity, and certification hurdles constrain growth.

High-value assemblies like engines and landing gear are still serviced abroad, with licensing rarely granting IP or design authority.

“Urgent reforms, including streamlined Directorate General of Civil Aviation (DGCA) approvals, rationalised import duties, OEM incentivisation, and unified accreditation, are critical to scaling competitiveness and retaining MRO business,” an MRO consultancy told The Core.

How Competitive Is India Today?

India’s aviation MRO sector remains underdeveloped, with few major players. Air India Engineering Services Ltd. (AIESL) runs overhaul centres in key cities, including Mumbai, Delhi, Nagpur, Kolkata, Thiruvananthapuram, and Hyderabad.

Air Works India, the only independent European Union Aviation Safety Agency(EASA)-certified facility, operates from Hosur. Indamer focuses on Airbus and Embraer work from Nagpur, as does GMR’s Hyderabad Aero Technic and Max Aerospace in Mumbai, which adds niche capabilities, mainly in avionics.

However, Adani’s acquisitions aren’t the only changes taking place. Public-sector players are also stepping up. AIESL and Hindustan Aeronautics Ltd (HAL) have partnered to offer cost-effective civil aircraft MRO, combining HAL’s defence-grade infrastructure with AIESL’s commercial expertise. AIESL maintains Air India’s widebody fleet and now services Kuwait Airways and select IndiGo and SpiceJet aircraft under third-party contracts.

Airlines, too, are investing in MRO infrastructure. IndiGo is building a 31-acre facility in Bengaluru, with 12 bays for narrowbody and widebody aircraft. Expected by 2028, it will triple IndiGo’s MRO capacity and cut foreign maintenance dependence. CEO Pieter Elbers called it “a cornerstone of India’s aviation future,” citing gains in resilience, cost efficiency, and ecosystem growth.

Meanwhile, GMR Aero Technic is expanding in Hyderabad with a widebody hangar (including paint capabilities) and two narrowbody hangars — one dedicated to defence MRO, slated for completion by March 2026. A source from GMR Hyderabad International Airport Ltd told The Core the facility holds Part 145 approvals from 29 countries, including EASA, the US’s Federal Aviation Administration, Oman’s Public Authority for Civil Aviation and Vietnam’s Civil Aviation Authority of Vietnam, enabling service across the Middle East and Asia-Pacific. It also partners with Boeing for freighter conversions.

The Bottlenecks

Driven by policy resets like reduced GST and new facilities by Safran, Pratt & Whitney, and Rolls-Royce in Hyderabad and Bengaluru, the focus is slowly shifting to high-value engine work, composite repairs, and AME training aligned with global standards.

While line and airframe maintenance are largely domestic, engine MRO remains a bottleneck. AIESL is currently the only facility that offers full overhaul capabilities for platforms like CFM56 and V2500. To bridge this gap, Safran is investing in a LEAP engine MRO plant in Hyderabad.

The talent pipeline is strained as well. India will need 13,000–15,000 certified aircraft maintenance engineers by 2030, but barely has half today. Training programmes are slow and don’t align with the needs of OEMs.

The Ministry of Civil Aviation is rolling out standardised apprenticeships and fast-track programs with AIESL and Boeing to improve technical readiness.

Pratt & Whitney has also set up a customer training centre in Hyderabad and specialised engineering courses in Bengaluru.

The DGCA still treats AME training as a certificate course, limiting career growth. Without faster, scalable reforms like degree apprenticeships and OEM tie-ups, India risks a 25% aviation workforce shortfall by the end of this decade.

The Core had earlier reported that India’s aviation engineers were leaving the country for much better pay and opportunities.

When Civil Meets Defence

India’s MRO story is also becoming dual-use. Certified civil MRO providers are increasingly maintaining a wide range of defence platforms and subsystems. AIESL works with Boeing on the Navy’s P-8I fleet. TASL and Lockheed Martin are building a C-130J facility in Bengaluru by 2027. Rolls-Royce and Azad Engineering are localising AE2100 engine servicing.

This convergence reflects growing trust in private capabilities and the need to optimise lifecycle costs across the armed forces.

MRO Hub In The Making?

While India’s journey to become an MRO hub in the region is off to a good start, it faces stiff competition from established hubs that have mature ecosystems, faster turnaround times, and OEM integration.

Success will hinge on incentivising global partnerships, streamlining compliance, and leveraging indigenous players. With strategic execution and trust-building, time will tell if India can shift from an MRO aspirant to a regional anchor.