With a boom in aviation sector, the exponential rise in MRO industry is grabbing the eyeballs of Industry-giants. With this in focus, Stat Times is organising the 2nd Aerospace and Defence MRO summit 2019 on 17th and 18th January, New Delhi.
Continuous rise of fleet size, comparatively low labour cost, rich pool of talented engineers, open sky policy, strategic location, and increase preference of Air travel by India’s middle-income group, has provided a fertile ground for MRO industry to spread its roots in India. Opportunities like these will propel India to be MRO giant in near future.
Airlines end up spending 13 to 15% of their cost for MRO, making it the second highest cost item after fuel. In India about 90% MRO work is done outside due to very few facilities here, however the developing MRO industry in India is estimated to grow at a CAGR of 10% by 2020.
Various policies initiated by Indian Government will also be an impetus to MRO industry like exemption of custom duty to maintain MRO and Aerospace Industry. Policies like Zero service tax, one year window restriction for using duty free parts, 100% FDI allowance in aircraft maintenance and repair operations will further encourage foreign investors to invest in the MRO sector. This in turn will lead to more international and domestic airlines setting-up in the country.
According to Boeing sources, Indian economy is projected to grow by nearly 350 per cent over the next two decades to become the third largest economy in the world. India's unprecedented domestic passenger traffic and rapidly expanding low-cost carriers (LCCs) will drive the need for 2,300 new jets which will be valued at $320 billion over the next 20 years
With the coming together of MRO industry giants, OEMs, Airlines along with highly placed officials from civil aviation industry, MRO South Asia 2019 aims to build India as a prospective gold mine for MRO in future