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India Eyes $15B Forex Savings via Aircraft Hub
26 Nov
Summary
- India aims to save up to $15 billion in foreign exchange.
- The nation is poised to become a global hub for aircraft MRO.
- Safran's new facility will begin operations in 2026.
India is set to emerge as a global center for aircraft maintenance, repair, and overhaul (MRO) services, potentially saving billions in foreign exchange. Civil Aviation Minister K Rammohan Naidu announced that the country could save as much as $15 billion in foreign exchange expenses by developing its MRO capabilities. This initiative aligns with India's status as one of the world's fastest-growing aviation markets.
The establishment of MRO facilities within India is crucial, as a majority of maintenance work for domestic carriers is currently outsourced overseas. The upcoming Safran Aircraft Engine Services India (SAESI) facility, slated for operation in 2026, represents a significant investment in boosting the nation's indigenous aviation engineering prowess.
This development is expected to positively impact airlines through cost savings, which could ultimately benefit passengers. With the domestic MRO market projected to reach $4 billion by 2031, growing at an annual rate of 8.9%, India's strategic focus on this sector is anticipated to yield substantial economic and operational advantages.
