**Executive Summary**
This document presents the Indian government's response to Unstarred Question No. 225, concerning the impact of import dependence on the civil aviation sector. The response, dated January 29, 2026, addresses the extent of import dependence for aircraft maintenance, repair, and overhaul (MRO) spares, its impact on operating costs, and measures to reduce this dependence through indigenous manufacturing and domestic MRO facilities.
**Key Points / Main Content**
* **Import Dependence:**
* Globally, Airbus and Boeing are the dominant manufacturers of commercial fixed-wing aircraft.
* Approximately 80-90% of Indian aircraft MRO spending flows to overseas facilities, leading to foreign exchange outflows and operational complexity.
* **Measures to Reduce Import Dependence:**
* The government promotes the development and manufacturing of aircraft and associated equipment by public and private enterprises.
* CSIR-NAL has developed the indigenous Hansa-3 (NG) 2-seater trainer aircraft, type-certified by DGCA for use by FTOs.
* New MRO Guidelines were announced on September 1, 2021, abolishing royalties and ensuring transparency in land allotments for MROs in AAI airports.
* **Taxation Benefits**
* IGST on imports of aircraft components and engine parts has been reduced to 5%.
* GST on MRO has been reduced from 18% to 5% with full Input Tax Credit.
* Transactions sub-contracted by foreign OEMs/MRO to domestic MRO are treated as 'exports' with zero-rated GST.
* Customs duty has been exempted on tools and tool kits.
* **Extended Time-Limits**
* The period for export of goods imported for repairs has been extended from six months to one year.
* The time limit for re-import of goods for repairs under warranty has been extended from three to five years.
* **Visa Facilitation**
* The Visa Manual has been amended to facilitate Business Visas and Temporary Landing Permits for foreign pilots and crew of scheduled or non-scheduled flights for MRO services in India.
**Impact Analysis**
**Stakeholder: Indian Civil Aviation Sector**
* **Impact:** Reduced import dependence and decreased foreign exchange outflow due to domestic manufacturing and MRO services. The new MRO guidelines and tax benefits may lead to increased investment and growth.
* **Action Required:** Leverage the government's initiatives and incentives to develop indigenous manufacturing capabilities and MRO facilities.
**Stakeholder: Flight Training Organisations (FTOs)**
* **Impact:** Access to the indigenously developed Hansa-3 (NG) trainer aircraft, potentially reducing training costs.
* **Action Required:** Consider incorporating the Hansa-3 (NG) into their training programs.
**Stakeholder: Domestic MRO Service Providers**
* **Impact:** Potential for increased business due to tax reductions, favorable treatment of sub-contracted work, and facilitation of foreign personnel.
* **Action Required:** Increase capacity and improve service offerings to attract foreign OEMs/MROs for sub-contracting opportunities.
**Stakeholder: Foreign OEMs/MROs**
* **Impact:** Potential to outsource work to domestic MROs in India.
* **Action Required:** Evaluate potential for outsourcing work to domestic MROs.
Key Entities Referenced
Ministry of Civil Aviation: The primary government body responsible for civil aviation policies and regulations in India.
Maintenance, Repair and Overhaul (MRO): Activities related to the maintenance, repair, and overhaul of aircraft, engines, and components.
MRO Guidelines: Guidelines issued to promote the development of the aircraft MRO sector.
Directorate General of Civil Aviation (DGCA): The regulatory body for civil aviation in India.
Council of Scientific and Industrial Research (CSIR): An organization developing indigenous aircraft and associated technologies.
GOVERNMENT OF INDIA
MINISTRY OF CIVIL AVIATION
LOK SABHA
UNSTARRED QUESTION NO. : 225
th
(To be answered on the 29 January 2026)
IMPACT OF IMPORT DEPENDENCE ON CIVIL AVIATION SECTOR
225. SHRI K E PRAKASH
Will the Minister of CIVIL AVIATION be pleased to state:-
(a) whether the Government has assessed the extent of import dependence in the
civil aviation sector, particularly for aircraft, engines, components and Maintenance,
Repair and Overhaul (MRO) spares and if so, the details thereof along with its impact
on operating costs; and
(b) the specific measures being taken to reduce such import dependence through
promotion of indigenous manufacturing and domestic MRO facilities?
ANSWER
Minister of State in the Ministry of CIVIL AVIATION
(Shri Murlidhar Mohol)
(a) and (b) Globally, Airbus and Boeing are the two dominant Original Equipment
Manufacturers (OEMs) who manufacture commercial fixed wing aircraft while other
OEMs manufacture regional aircraft. As per industry estimates, approximately 80-
90 per cent of Indian aircraft Maintenance, Repair and Overhaul (MRO) spending
flows to overseas facilities. This creates direct costs including foreign exchange
outflows and aircraft downtime, as well as indirect costs related to spare engine
requirements and operational complexity.
In order to reduce import dependency, the Government promotes and facilitates the
development and manufacturing of aircraft and associated equipment by public and
private enterprises in India. Council of Scientific and Industrial Research (CSIR),
through its constituent laboratory namely, CSIR-National Aerospace Laboratories
(CSIR-NAL), has developed indigenous 2- seater trainer aircraft Hansa-3 (NG),
which is type-certified by Directorate General of Civil Aviation (DGCA) for use by
Flight Training Organisations (FTOs) for commercial pilot training.Other measures to create a conducive environment for the development of the aircraft
Maintenance, Repair and Overhaul (MRO) sector, include the new MRO Guidelines
announced on 1st September, 2021 which inter alia abolish royalties and build in
transparency and certainty in land allotments for MROs in AAI airports. On the
taxation front, Government has reduced the taxes (IGST) on imports of aircraft
components and aircraft engine parts to 5%, to make the domestic aerospace industry
more competitive. GST on MRO has been reduced from 18% to 5% with full Input
Tax Credit and Transactions sub-contracted by foreign OEMs/MRO to domestic
MRO are treated as 'exports' with zero-rated GST. Customs duty has also been
exempted on tools and tool kits.
Further, the period for export of goods imported for repairs has been extended from
six months to one year and the time-limit for re-import of goods for repairs under
warranty has been extended from three to five years. More recently, the Visa Manual
has been amended to incorporate suitable provisions for granting Business Visa and
Temporary Landing Permit (TLP) to foreign pilots and crew of scheduled or non-
scheduled flights coming for the purpose of MRO services in India.
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