"Make in India - MRO Makes it Happen"
The buzz seen in the global MRO (Maintenance, Repair & Overhaul) industry has trickled down to regions faster than expected. The well known MRO hub North America is loosing its sheen as South Asia emerges as the new hub. Coupled with encouraging policies, open markets for foreign direct investments (FDI) and increased investments saw more MRO facilities coming up in South Asia with growing prominence in India.
Growing aircraft fleet size, strategic location, trained pool of highly skilled engineering expertise clubbed with lower labour cost gives India the edge to be a global MRO hub in the longer term. Growth seen in the aviation segment is resulting in an increased demand for MRO facilities in India. According to Boeing estimates, the Indian fleet will reach 1200 in size by 2020. India at present has 400 commercial and 700 general aviation aircraft. 300 business jets, 300 small planes and 250 helicopters are expected to be added to the current fleet over the next five years.
Opening up of Indian defence segment has been the major step towards modernisation. The government has allowed 100 percent FDI in defence sector of which 49 percent is under automatic route and above 49 percent is through government route. The requirement of single largest Indian ownership of 51 percent of equity has been removed. A lock-in period of three years on equity transfer has also been done away within FDI for defence.
Encouraging signs of policy support, conducive business conditions, varied investment opportunities in the South Asia region has inspired to create ‘Make in India: MRO makes it happen’. The two-day event will bring in all stakeholders both from government and private sector on to the same platform to explore, discuss and enhance business opportunities.