India is rapidly charting a new course in the global aviation sector, with Prime Minister Narendra Modi announcing a bold vision to transform the country into a $4 billion Maintenance, Repair, and Overhaul (MRO) hub by 2030. This announcement was made during the 81st Annual General Meeting of the International Air Transport Association (IATA) held in Delhi, where the Prime Minister addressed global aviation leaders and industry stakeholders.
Prime Minister Modi described the MRO sector as a “sunrise sector” for India, emphasising the government’s commitment to making the nation not just an aviation market but a leader in the global aviation value chain. He highlighted that the number of MRO facilities in India has grown significantly, from just 96 in 2014 to 154 in 2025, a testament to the sector’s rapid expansion and the government’s reform-driven approach.
Policy Reforms
A series of policy reforms have laid the foundation for this growth. The government has allowed 100 per cent Foreign Direct Investment (FDI) in the MRO sector under the automatic route, reduced the Goods and Services Tax (GST), and rationalised other tax structures. These steps have made it easier for international companies to invest and operate in India, creating a more attractive environment for global aviation businesses. The new Indian Aircraft Act, which aligns India’s aviation regulations with international standards, further streamlines compliance and opens up significant investment opportunities.
The Prime Minister also pointed out that the growth of the MRO sector is expected to generate new jobs and opportunities for Indian youth, including pilots, engineers, crew members, and ground staff. The government’s focus is not limited to “Make in India” but extends to “Design in India”, encouraging innovation and manufacturing in the aviation sector.
India’s aviation market is already one of the fastest-growing in the world, with domestic and international passenger numbers expected to double from 24 crore to nearly 50 crore annually by 2030. The country currently operates 162 airports, with plans to expand this number to 350 by 2047, further supporting the growth of the aviation ecosystem.
Gender Diversity
Prime Minister Modi also highlighted the importance of gender diversity in the sector, noting that over 15 per cent of Indian pilots are women, which is three times the global average. The government is also leveraging new technologies, such as drones, to support various sectors, including agriculture and logistics, further integrating aviation into the broader economy.
Legal reforms, such as the Protection of Interest in Aircraft Objects Bill, have also been introduced to provide legal backing to the Cape Town Convention in India, safeguarding the interests of aircraft lessors and making India a more attractive destination for aircraft leasing. Incentives at Gift City and other policy measures are expected to further boost investment in the sector.
