Can India anchor Asia-Pacific’s business aviation ecosystem?

opinion

by Fayaz Hussain

May 28, 2026

The article is authored by Iain Houseman, president, ZenithJet and Lovejeet Singh, partner, Chandhiok & Mahajan Advocates and Solicitors

Iain Houseman, President, ZenithJet

Recent disruptions in the Gulf countries have exposed the fragility of the global aviation support network. The Gulf nations have historically served as a dominant Maintenance, Repair and Overhaul (MRO) hub, positioned between Europe, Asia, and Africa. However, the current geopolitical situation is reshaping the landscape significantly. With conflict hampering maintenance operations in key Gulf countries, aircraft operators have had to consider alternatives at a time when the industry is already facing supply and demand challenges. Even with new facilities and investment in recent years, capacity across the Asia‑Pacific (APAC) region remains thin, with gaps in the geographic location of established heavy‑maintenance bases and advanced training infrastructure.

Amid this shifting geopolitical landscape, India is uniquely positioned to step forward and leverage its location to cater to the maintenance requirements of neighbouring regions. However, the question arises whether the Indian MRO ecosystem is strong enough to take advantage of the ongoing situation, given the fact that Indian-registered aircraft rely on overseas MROs for high-value heavy maintenance checks.

This article examines potential opportunities for India in the current scenario, key bottlenecks hampering the Indian MRO ecosystem, and steps that could be undertaken to become an MRO hub.

Indian market and economic potential

India’s general aviation sector is expected to witness significant long-term growth, driven by rising corporate connectivity needs and increased investments in intraregional transport infrastructure. Across the wider APAC region, business and general aviation activity is also expected to witness substantial long-term growth by the mid-2030s.

For India, establishing a broad-based business aviation ecosystem covering MRO, component manufacturing, and training could contribute significantly to GDP over the next decade. Beyond direct revenue generation, the sector would create high-value employment opportunities, strengthen aerospace exports, and facilitate skill transfer from the defence sector to civil aviation.

The structural gaps in Indian MRO ecosystem

Aircraft operated in India’s general aviation segment include those from OEMs such as Gulfstream, Bombardier, Hawker, Cessna, Beechcraft and a wide range of helicopter manufacturers. At present, most Indian‑registered business aircraft depend on overseas facilities for heavy checks. The key reasons for reliance on the foreign MROs are:

Fragmented and shallow MRO landscape: India’s MRO landscape, particularly for general aviation, remains fragmented and relatively shallow, lacking the depth of capability seen in more mature markets.
Limited OEM-authorised service centres: There is limited availability of OEM-authorised service centres in India, which forces operators to look abroad for maintenance.
Absence of major-check capability: Indian MROs lack true major-check capability that is on par with global MRO centres. The existing facilities are largely limited to light and medium maintenance.
Training deficiencies: India’s aviation training infrastructure remains fragmented and capacity constrained, with existing pilot, aircraft maintenance engineer, and technical training ecosystems considered insufficient to fully support the country’s rapidly expanding aviation and MRO sector. Industry stakeholders continue to highlight shortages in advanced simulation facilities, type-rated technical training, and skilled maintenance personnel.
Regulatory alignment gaps: There is a need for alignment of DGCA regulations with EASA and FAA standards to build international confidence and attract global operators.
Infrastructure still under development: While dedicated MRO zones at airports such as Hyderabad, Mumbai, Delhi, and Bengaluru have been developed or are under development, the overall ecosystem and supporting infrastructure are still evolving and not yet fully scaled to meet future industry requirements.

By contrast, countries such as Germany with a similar business aircraft fleet of roughly 350–400 active business jets and turboprops maintain a highly integrated ecosystem. Germany hosts multiple EASA Part‑145 certified MRO providers offering comprehensive heavy maintenance, avionics upgrades, and completions.

MRO capacity

Currently, the Regional Business Jet MRO capacity is concentrated in the following key jurisdictions:

Middle East: This is now temporarily reduced due to regional instability.
Asia Pacific including Australia: Singapore is constrained by space and rising costs and Australia is primarily focused on commercial carriers.
China: Hosts multiple MROs, but strict regulations limit participation by non‑Chinese operators.
Western Europe: Estimated to provide approximately 13% of global MRO.

The ongoing geopolitical disruption is compelling aircraft operators to diversify their MRO supply chains geographically. This creates a structural opportunity for emerging markets like India to position themselves as a cost-efficient, neutral, and scalable alternative. India’s geographical proximity to key aviation growth markets offers a natural advantage – reduced ferry costs and minimised aircraft downtime thereby enhance operational efficiency and turnaround timelines for operators.

India’s emerging strategic advantage

The following structural strengths give India a pathway to global leadership:

OEM interest

Safran: Safran has a significant and growing presence in India. Safran and Air India signed a major agreement for CFM LEAP-1A engine maintenance, and Safran has since established a dedicated LEAP engine MRO facility in Hyderabad. Safran Aircraft Engines also has a joint venture with Hindustan Aeronautics Limited (HAL) for helicopter engine maintenance. Additionally, Safran has partnered with GMR Aero Technic in Hyderabad for MRO services.
GE Aerospace: GE Aerospace has long-standing partnerships in India. Its most prominent collaboration is with HAL, which operates as an authorised MRO centre for GE engines. It also has an engineering and technology centre in Bengaluru, one of its largest outside the US, which supports R&D and engineering for aviation programmes.
Pratt & Whitney: Pratt & Whitney has a notable presence in India. In 2024, P&W inaugurated an India Customer Training Centre in Hyderabad. The company has also partnered with Air India Engineering Services Limited (AIESL) for engine MRO work.
Airbus: In 2024, Airbus signed an MoU with Tata-owned Air India to launch a world-class pilot training centre in Gurugram, Haryana and GMR Aero Technic to develop Airbus-authorised MRO capabilities in India. Airbus also has a long-standing partnership with Tata Group through the C-295 transport aircraft manufacturing facility in Vadodara, Gujarat – India’s first private-sector final assembly line for military aircraft.
Embraer: Embraer is partnering with Adani Defence & Aerospace to establish a Final Assembly Line (FAL) for regional transport aircraft in India, significantly expanding its Indian footprint. The collaboration aims to localise production of jets like the E175. It is likely that Embraer will also consider MRO facility for its jets produced in India.
Boeing: Boeing has a substantial and expanding presence in India. Boeing’s key partnerships include a joint venture with Tata Group – Tata Boeing Aerospace Limited (TBAL) in Hyderabad, which manufactures AH-64 Apache fuselages and other aerostructures. On the MRO side, Boeing has been working with AIESL and exploring further MRO partnerships as Air India’s fleet of B787 Dreamliners, B777s, and B737 MAX aircraft. Boeing also operates Boeing India Engineering & Technology Center (BIETC) in Bengaluru, one of its largest engineering centres outside the US. In 2024, Boeing and Air India signed agreements to strengthen MRO and training capabilities in India.

Raw materials and supply base: The country’s metallurgical industry, composite manufacturers and aerospace supply chains provide a reliable platform for component fabrication and MRO supply chain continuity.
Workforce Potential: India has increasing number of DGCA-licensed Aircraft Maintenance Engineers (AMEs). Workforce costs also remain comparatively lower in India than in Singapore, Europe or the United States.
Market Scale: As per IATA projections, India will be the third largest aviation market by 2030. Global MRO players should view India not merely as a cost-arbitrage location but as a market with significant long-term potential.

Regulatory framework

The Government of India has taken several steps in the past to promote MRO industry. A cascading tax structure (18% GST on MRO services, import duties on spares and tooling) made Indian MROs uncompetitive. The government rationalised this by:

Reducing GST on MRO services from 18% to 5% (with input tax credit); and
Customs duty exemption / concessions on specified aircraft parts, component, tools and equipment imported for MRO purposes.

The road ahead for India

Strategic partnerships: Given that India already has an MRO base that needs upscaling, strategic partnerships between foreign players and Indian MROs can bring established quality systems and instil confidence among aircraft owners/operators to consider MRO services in India. India’s foreign direct investment (FDI) policy permits 100% FDI under the automatic route in MRO services, making such partnerships structurally flexible. A foreign partner may consider holding a majority stake, if commercially agreed.
Technical services agreements: A lighter-touch alternative could also be considered, whereby a global MRO licences its maintenance programmes, tooling, and training to an Indian entity without equity participation. Royalty payments pursuant to a technical services agreement can also be tax-efficient, given favourable Double Taxation Avoidance Agreements (DTAAs) with many jurisdictions.
OEM Engagement: As stated above, there is a substantial precedence in India of OEMs engagement relating to the commercial side of aviation. OEMs such as Gulfstream Aerospace, Embraer or Bombardier Aviation could potentially consider technical and licensing arrangements with Indian MROs to operate as authorised service centres. This will typically involve strict compliance with OEM standards, thereby boosting the confidence of aircraft owners/operators. This would give the Indian facility global customer access and OEM-backed quality assurance.

A moment to act

Lovejeet Singh, Partner, Chandhiok & Mahajan, Advocates and Solicitors

The ability to leverage existing facilities in India and elevate their capability may be the starting point for wider investment and development of aviation infrastructure that becomes a regional hub. If existing maintenance facilities in India can attract the right support to improve their current capability and capacity, India can bridge a critical regional gap.

Beyond airframes and engines, a full ecosystem from component manufacturing to flight instruction can emerge, one that supports and drives the wider industrial sectors feeding into infrastructure and aviation development.

By combining its industrial capability, geographic advantage, global talent access, and growing investor confidence, India could evolve into what Germany represents for Europe – the central, dependable hub for business aviation services.

With regional demand surging and reliability now a strategic asset, this may truly be India’s moment to create a resilient business aircraft ecosystem at the heart of the APAC region and add significant revenue and high-value, high-skill jobs that would support economic growth.

India’s Ministry of Aviation has set out an ambitious aviation vision supported by India’s legal framework which permits and encourages foreign participation through joint ventures and strategic partnerships. Success will depend on the creation of an environment where OEM alignment, technical capability, and service reliability builds an effective aviation ecosystem that supports the growth. If these elements are effectively integrated, India can position itself as a credible and competitive partner within an increasingly interconnected aviation maintenance ecosystem.

Lastly, the recent Corporate Jet Investor conference held in March in New Delhi served as a timely forum, bringing together key stakeholders to examine both the potential and the challenges inherent in realising India’s aviation ambitions. One of the key takeaways from the conference is the development of a wider manufacturing ecosystem and ancillary services in India necessary to sustain long-term growth of the aviation sector.

Disclaimer: The content of this article is intended to provide a general guidance to the subject matter and should not be construed as an advice. The views of the authors are personal. Specialist advice should be sought in case of specific circumstances.