India aims to become $4 billion MRO hub by 2030, says PM Narendra Modi

Welcoming global aviation leaders as the IATA event returned to India after four decades, Modi highlighted the nation's rapid aviation growth

India is aiming to become a global hub for aircraft maintenance, repair, and overhaul (MRO) services worth $4 billion by 2030, Prime Minister Narendra Modi told delegates at the International Air Transport Association’s (IATA) 81st annual general meeting in New Delhi on Monday.

 

The growth plan, he said, will be supported by an expansion in the number of MRO facilities, from 96 in 2014 to 154 now, 100 per cent foreign direct investment (FDI), reduced goods and services tax (GST), and regulatory reforms.

 

Most MRO services for Indian carriers are currently carried out overseas due to the limited number of domestic facilities equipped to service nacelles, engines, auxiliary power units (APUs), and landing gear, according to aviation industry sources.

   

Welcoming global aviation leaders as the IATA event returned to India after four decades, Modi highlighted the sector’s double-digit growth in the country. “In India, 240 million passengers travel domestically and internationally per year. This number is expected to increase to 500 million passengers per year by 2030,” he further said. 

 

The prime minister pointed to India’s expanding infrastructure and said: “Until 2014, there were 74 operational airports. Now, this number has increased to 162... This is just the beginning. India’s aviation sector has to grow long and wide. These are not just statistics. They are a sign of the potential of India’s future.”

 

He praised the regional connectivity scheme, UDAN (Ude Desh ka Aam Nagrik), calling it “a golden chapter in Indian civil aviation history”. The plan, launched in 2016 to promote air travel in smaller towns, has helped “over 15 million passengers benefit from affordable air travel,” the prime minister noted.

 

UDAN benefits passengers by offering lower airfares on regional routes. Furthermore, airlines receive financial support through viability gap funding and concessions like reduced airport charges and tax breaks.

 

Modi also pointed to the use of digital innovation to streamline air travel. “I would request all delegates to try to understand the Digi Yatra app, which has been developed to ensure paperless travel from the entry to the end point in an airport,” he said. “This is a smart and secure model that could be of use to the Global South.”

 

Highlighting the emergence of the MRO industry as a sunrise sector, he said India is accelerating its efforts to become a global hub for aircraft maintenance. In 2014, there were 96 MRO facilities in the country; that number has now risen to 154, the prime minister said, adding, “100 per cent FDI under the automatic route, GST reduction, and tax rationalisation measures have given fresh momentum to India’s MRO sector.”

 

India’s goal is to establish a “$4 billion MRO hub” by 2030, he said, aligning with the nation’s aviation growth strategy. 

 

Modi stressed the need for innovation in manufacturing and design and told the industry that “Design in India is needed along with Make in India”.

 

He also underlined India’s commitment to green technologies, sustainable aviation fuels, and reducing carbon footprint. Among the regulatory reforms, Modi cited the Indian Aircraft Act, which “aligns aviation laws with global best practices, creating a simplified regulatory framework and significant investment opportunities”.

 

He pointed to gender diversity in India’s aviation workforce as another area of strength. “Over 15 per cent of pilots in India are women -- three times the global average -- and women make up 86 per cent of our cabin crew, well above the global norm,” the prime minister said.

 

He also acknowledged the growing role of drones in supporting women's self-help groups, particularly in agriculture, logistics and related services.

 

Looking further ahead, Modi said the future of aviation is no longer limited to Earth. “Today, we are standing at a juncture not based on the surface. Today, humanity is looking to commercialise travel even on an interplanetary level. It is true that it will take time,” he said.

 

About safety, the prime minister reaffirmed that “aviation safety has always been India’s top priority,” and noted that a recent safety audit by the International Civil Aviation Organization recognised the country’s efforts in “strengthening aviation security”.