Key Terms & Concepts — UPSC Mains
MRO (Maintenance, Repair, and Overhaul)
"The aviation industry segment dealing with aircraft maintenance, repair, and overhaul services — a key component of aviation infrastructure"
Maintenance, Repair, and Overhaul (MRO) refers to the comprehensive set of activities required to keep aircraft in airworthy condition — including routine line maintenance (pre-flight checks, minor repairs), heavy maintenance (structural inspections, component overhauls), engine overhaul, and component repair. India's MRO market is estimated at approximately USD 1.7-2.0 billion annually, but over 85% of Indian airlines' MRO work is performed abroad (primarily in Singapore, Malaysia, Sri Lanka, and the Middle East) due to high domestic GST rates, lack of infrastructure, and shortage of skilled manpower. The Government of India reduced GST on MRO services from 18% to 5% in 2019 and allows 100% FDI under the automatic route for MRO facilities to encourage domestic MRO hub development.
Relevant for UPSC GS-3 (Infrastructure, Industrial Policy) and Prelims. UPSC tests India's aviation sector policies, the MRO industry's FDI policy (100% automatic route), GST reforms, and the strategic importance of developing domestic MRO capabilities. The Noida International Airport master plan includes a dedicated MRO hub.
- 1 Covers aircraft line maintenance, heavy maintenance, engine overhaul, and component repair
- 2 [object Object]
- 3 Over 85% of Indian MRO work done abroad due to high costs and lack of infrastructure
- 4 GST on MRO reduced from 18% to 5% in 2019 to boost domestic industry
- 5 100% FDI under automatic route for MRO facilities
The Noida International Airport master plan includes a dedicated MRO hub within YEIDA's 5,000-hectare industrial zone — part of India's effort to bring back MRO work currently outsourced to Singapore, Malaysia, and Sri Lanka.
