MRO Policy Reform

India Overhauls Regulatory Framework to Accelerate Domestic Maintenance Growth

The Ministry of Civil Aviation has introduced new policy measures to streamline aircraft maintenance operations and attract foreign investment into the domestic repair and overhaul sector. The Ministry of Civil Aviation is pivoting toward a more liberalized regulatory environment to reduce the historic reliance on overseas facilities for heavy maintenance. By simplifying the leasing and sub-leasing processes at airports and integrating specialized customs procedures for spare parts, the government aims to lower the operational costs that have previously driven Indian carriers to seek MRO services in Southeast Asia or the Middle East. These structural shifts are intended to foster a competitive ecosystem for engine and airframe maintenance within the country. The move coincides with massive aircraft orders from major domestic carriers, creating a guaranteed long-term demand for local technical services. If successful, these reforms will transition the local industry from basic line maintenance to complex engine overhauls, potentially capturing a larger share of the regional aerospace services market. Signals: Implementation of a uniform 5% integrated GST rate on all aircraft and engine parts.