Prime Minister Narendra Modi on Wednesday inaugurated Safran's state-of-the-art Maintenance, Repair and Overhaul (MRO) facility for LEAP engines at the GMR Aerospace and Industrial Park, marking a major milestone in India's growing aviation ecosystem.

The 45,000 sq. m. facility-set up with an initial investment of ₹1,300 crore—is now the largest MRO hub in the world dedicated to LEAP engines, the powerhouses that drive next-generation narrow-body aircraft.

“This will help establish India as a global MRO hub and create new opportunities for youth in the high-tech aerospace sector” —Prime Minister Narendra Modi

Designed to service up to 300 LEAP engines annually once fully scaled, the Safran MRO hub is expected to employ more than 1,000 highly skilled Indian technicians and engineers by 2035, positioning Hyderabad as a critical node in the global aviation supply chain.

Design in India

Prime Minister Modi emphasised the government's strong push for advanced manufacturing and aerospace innovation under the 'Design in India' vision. "India is dreaming big, doing bigger and delivering best," he said, noting that the country has undertaken some of the most sweeping reforms since independence to attract global investment.

The Prime Minister highlighted India's liberalised foreign investment regime, pointing out that "today in most sectors, 100 per cent foreign direct investment (FDI) is possible through automatic routes. Even in sectors like defence, where earlier the private sector had no space, 74 per cent FDI has now been opened through automatic routes."

A new flight for India's aviation sector

Calling the Safran facility a "transformational step," Prime Minister Modi said the project will greatly strengthen India's aviation infrastructure at a time when domestic air travel is surging.

India is now the third-largest domestic aviation market globally, with airlines rapidly expanding their fleets to meet rising demand. This expansion has also intensified the need for robust, local MRO capabilities.

The project will greatly strengthen India's aviation infrastructure at a time when domestic air travel is surging

"Nearly 85 per cent of India's MRO work is currently undertaken abroad, resulting in higher costs and longer turnaround times," Modi noted. "With the opening of this world-class facility, India's aviation sector is taking a new flight. This will help establish India as a global MRO hub and create new opportunities for youth in the high-tech aerospace sector."

MRO: Localised maintenance

The Indian aircraft MRO sector is estimated to be worth around ₹18,500 crore at present, with growth projects the industry to grow roughly 9 per cent annually, and by 2031, it could reach ~ ₹34,000 crore.

According to a recent assessment, the domestic MRO industry's revenue is forecast to cross ₹4,500 crore by FY 2026, reflecting about a 50 per cent increase over FY 2024.

However, despite this growth, domestic MROs currently fulfil only about 15–20 per cent of India's total MRO demand; the rest is outsourced abroad.

For engine and component maintenance (which accounts for 60–70 per cent of MRO costs), India has historically relied heavily on overseas MRO hubs. Airlines generally allocate 12–15 per cent of their total revenues to MRO, making MRO the second-largest expense after fuel.

Moreover, outsourcing overseas has high cost — both direct (payments for MRO work) and indirect: higher turnaround times, longer aircraft groundings, logistics, foreign-exchange outflow, and strategic vulnerability. However, the lack of capacity and certification has meant that airlines often have no choice but to outsource.

Domestic MROs currently fulfil only about 15–20 per cent of India's total MRO demand; the rest is outsourced abroad

The government has taken policy measures to support domestic MRO: e.g. reduction in GST on MRO services and components, better land-lease policies, easing regulatory burden — all intended to make domestic MRO more competitive.

Since 2024, in a major policy thrust on MRO, the government has implemented a uniform 5 per cent integrated GST (IGST) rate on all aircraft parts and aircraft-engine components (imported or domestic). Before this change, GST rates on different aircraft parts ranged widely — 5 per cent, 12 per cent, 18 per cent, and 28 per cent.

Furthermore, India offers a labour cost advantage as the labour and operational costs for MRO in India are significantly lower than in mature markets. This gives India a competitive advantage — if quality, certification, and scale issues are addressed.

India offers a labour cost advantage as the labour and operational costs for MRO in India are significantly lower than in mature markets

Safran's investment in Hyderabad is part of a broader global strategy to localise engine support closer to major airline customers. With many Indian carriers operating LEAP-powered aircraft, the facility is expected to significantly cut maintenance costs and turnaround times for domestic airlines.

The MRO hub will also strengthen India's standing as a preferred destination for aerospace manufacturing and services—an area in which the country is aggressively expanding its footprint.

Beyond its technological scale, the facility promises substantial employment generation, particularly in advanced engineering and precision manufacturing. As the centre expands its output over the next decade, more than 1,000 skilled professionals are expected to work onsite, contributing to India's high-value aerospace workforce.

 

Manish Kumar Jha is a Consulting & Contributing Editor for SP's Aviation, SP's Land Forces and SP's Naval Forces and a security expert. He writes on national security, military technology, strategic affairs & policies.