US Lifts Tariffs on Indian Aircraft Parts, Boosting India's Aerospace & MRO Industry

• The US has removed national security-related tariffs on certain Indian aircraft and parts, a move set to significantly boost India’s aerospace manufacturing and MRO industry.
• This decision is part of an interim agreement between India and the US, opening doors for India to purchase US aircraft and components under a proposed $500 billion plan.
• India's government has implemented policy reforms and fiscal incentives, including customs duty exemptions on aircraft parts and reduced GST on MRO services, to support domestic capabilities.
• The MRO industry in India is projected to grow to $4 billion by 2031, with reforms attracting investments like Safran's new MRO facility in Hyderabad.
• Major Indian airlines, Air India and IndiGo, are also investing heavily in large MRO facilities at Bengaluru International Airport, enhancing domestic capacity and employment.