
Summary:
India's aviation maintenance, repair, and overhaul (MRO) industry is projected to grow by 50% by FY26, reaching Rs. 4,500 crore (US$ 521.38 million). According to Crisil's research, this growth will be driven by domestic airline carriers expanding their fleet sizes. The reduction in Goods and Services Tax (GST) on aviation components and services will enhance the competitiveness of Indian MROs and ease working capital constraints, resulting in increased profitability and expansion.
The domestic fleet is expected to grow by 20-25% in the next fiscal year, driven by new aircraft and the return of grounded jets. The MRO sector, which provides line, airframe, and redelivery checks, will see higher demand. Redelivery checks are anticipated to increase tenfold from FY24. Indian MROs' share of total MRO spending is expected to rise, bolstered by capacity improvements and enhanced local aviation capabilities, leading to a 20% increase in profitability by FY26.
Source: IBEF
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