By Atul Suri (Dr. Wamser + Batra GmbH) – suri@wamser-batra.de
Lufthansa Technik, MTU and Safran are investing along the MRO value chain in India. This finally puts India in the spotlight of the global aviation aftermarket. For medium-sized European suppliers, the question is not so much whether the market will develop, but rather how resilient their own operational positioning is locally.
India is increasingly positioning itself as a major player in the global aviation ecosystem. This is driven by rapidly growing air traffic, a rapidly expanding fleet and the political goal of retaining more maintenance and aftermarket value creation within the country. The decisive factor here is not only additional MRO capacity, but also the ability to reliably provide parts, materials and repairs.
Market, regulation and investment
The regulatory framework has improved significantly. The opening of the MRO sector to 100% foreign direct investment and the reduction of GST on MRO services from 18% to 5% are fundamentally changing the economic logic of the location.
At the same time, substantial industrial investments are flowing into the country. Safran is building a LEAP engine MRO plant in Hyderabad with an investment volume of around EUR 200 million, which is scheduled to go into operation in 2026. Lufthansa Technik is expanding its activities with Indian airlines and investing specifically in local components and material availability. EME Aero, the joint venture between Lufthansa Technik and MTU, is also continuing to expand its capacities, training and material concepts.
These investments are meeting with a market that is exceptionally dynamic. Indian airlines have around 1,700 aircraft on order. At the same time, only around 15–20% of Indian MRO demand is currently being met within the country itself. According to IATA, more than 150 aircraft were temporarily out of service at the end of 2024 – primarily as a result of global bottlenecks in engines, spare parts and MRO slots. The bottleneck is therefore less technical than operational in nature.
Supply chain as the strategic core of the MRO business
The main bottleneck in the Indian MRO market lies less in pure maintenance capacity than in the upstream supply of parts, materials and approved repairs. Over 90% of MRO supplies are still imported. Dependencies on international supply chains, volatile delivery times and complex customs, classification and duty processes extend turnaround times and tie up working capital.
For airlines and MROs, the focus is thus shifting significantly: away from the question of whether a repair is technically possible, to the question of when the required part or approved repair will actually be available. Delivery capability is becoming the real differentiating factor.
For European suppliers, this means a change in perspective. Resilient operational models are in demand: local spare parts stocking, pooling and rotables concepts, clearly defined repair loops and viable second-source strategies. As MRO volumes increase, the bottleneck inevitably shifts from repair capacity to parts availability and controllability of material flows.
A local footprint thus becomes a decisive lever. Authorised distribution, repair stations with OEM and DGCA approval and – where regulatory requirements allow – local manufacturing or assembly of selected components as part of "Make in India" are increasingly becoming prerequisites for reliable delivery commitments. For OEM-related suppliers, this means control over aftermarket performance, quality and margins, while for distributors it means proximity to MRO, response speed and operational reliability.
Transparency and controllability through digital processes
The rapid expansion of capacity in India makes it possible to set up new MRO structures digitally from the outset. The real leverage here lies not in individual tools, but in a consistent, auditable process landscape.
Only when requirements, inventories, repair capacities, customs status and compliance requirements are transparent across multiple levels can turnaround times be shortened and AOG risks actively managed. Data thus becomes the common language between MROs, suppliers, airlines and regulators.
End-of-Life-Management next step in the value chain
As the Indian MRO market matures, end-of-life management is becoming increasingly important. Repair instead of replace, used serviceable material, and certified reuse and recycling are evolving from an ESG issue to an instrument of operational stability.
For European OEMs and suppliers, this opens up the opportunity to establish early standards for teardown processes, traceability, repair engineering and digital component histories in India – and thus to have a lasting impact on availability, throughput times and costs.
Qualification as a stabilising factor
The shortage of skilled workers remains a structural bottleneck. Although India has several thousand licensed aircraft maintenance engineers, demand is growing faster than training capacity and experience – especially in engine MRO, avionics and composite repairs. Migration to the Middle East is further exacerbating the situation.
Qualification is thus becoming an integral part of stable operating models. Training approaches, train-the-trainer programmes and technology-based support are increasingly determining whether repair and delivery commitments can be met.
What determines success or failure
The Indian market rewards diligence rather than speed. DGCA approval processes often take 12 to 18 months. Customs and tax structures are complex, and working capital requirements are often underestimated. Certification is not a downstream compliance step, but an integral part of a functioning business model.
Conclusion: Operational delivery capability is a success factor
India is in the process of developing from a pure growth market to a structurally relevant MRO location in the aviation aftermarket. The decisive factor here is not so much the expansion of hangars and slots, but rather the reliable availability of parts, materials and approved repairs along the entire supply chain.
For European suppliers, the focus is thus shifting to robust operational setups on site: inventory and pooling models, clearly defined repair loops, DGCA-compliant processes, customs/tax routines and scalable qualification. Those who establish these foundations early on can measurably reduce turnaround times and AOG risks – and position themselves sustainably in a dynamic market environment.