India’s fast-expanding aviation sector reached a defining moment on Thursday as Prime Minister Narendra Modi inaugurated Safran Aircraft Engine Services India (SAESI), a major engine maintenance, repair and overhaul (MRO) facility at the GMR Aerospace and Industrial Park in Hyderabad. Joining the ceremony via video link, he also laid the foundation stone for Safran’s upcoming M88 Rafale engine MRO centre on the same campus.
Describing the inauguration as a key stride in India’s aviation ambitions, Modi said the country could no longer remain dependent on foreign MRO centres, with nearly 85 percent of aircraft servicing still outsourced abroad. “India’s aviation sector is taking a new flight,” he said, emphasising the goal to transform the nation into a global MRO hub. He highlighted India’s booming aviation market—now the third-largest globally—and noted that domestic airlines have ordered over 1,500 aircraft, underscoring the scale of upcoming maintenance needs.
Civil Aviation Minister K Rammohan Naidu said India’s MRO market could reach USD 4 billion by 2031, adding that shifting work to domestic facilities would save an estimated USD 15 billion in foreign exchange in the coming years. He noted that strengthened MRO capacities would also spur opportunities for MSMEs and specialised manufacturing partners.
Telangana Chief Minister A Revanth Reddy said Hyderabad was steadily emerging as a major aviation cluster, supported by global OEMs, engineering service firms and a growing pool of skilled professionals. He reaffirmed the state’s commitment to facilitating aerospace investments and expanding the region’s industrial ecosystem.
The SAESI facility, built with an investment of around ₹1,300 crore and spanning 45,000 sq. m, is among Safran’s largest servicing centres worldwide. The unit will maintain Leap engines used in Airbus A320neo and Boeing 737 MAX aircraft. By 2035, it is expected to service up to 300 engines annually and employ more than 1,000 engineers and technicians.
Modi said the centre would create high-value jobs, strengthen technology transfer and expand training collaborations with Indian institutions. He encouraged Safran to explore designing engines and components in India, citing the country’s deep talent pool and vibrant MSME network.
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He also linked the aviation push to broader economic reforms that have improved India’s investment landscape—including 100 percent FDI in most aviation segments, greater private participation in defence manufacturing, reduced compliance burdens and simplified tax systems. These steps, he said, have positioned India as a trusted market and an emerging global manufacturing destination.
The Centre has been working to develop a robust MRO ecosystem through initiatives such as GST rationalisation for the sector in 2024, the MRO Guidelines 2021 and measures under the National Civil Aviation Policy. Officials say these changes have brought down operational costs and improved ease of doing business for international and Indian MRO players.
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