Central government of India has again emphasized the importance to growth of Indian Aircraft MRO (Maintenance, Repair and Overhaul) sector. The government has already changed the tax system to encourage the sector. It has also exempted MRO Service providers from custom duties on aircraft parts and tool kits. It also extended the storage period for aircraft spares to a period of 3 years for the purpose for taxation. The industry in India generates about $900 million annually and the industry is growing at a modest rate over years despite the aviation industry growing in double digits.
With airlines’ fleet growing annually by 100, the size of domestic and imported Indian airline MRO is set to grow annually to ₹ 21,600 crore in the next five years and to ₹ 36,000 crore once the fleet size reaches 2,000 aircraft.