Lok Sabha Question No. 225 (UNSTARRED), answered on 2026-01-29
Subject: Impact of Import Dependence on Civil Aviation Sector
Ministry: CIVIL AVIATION
Asked by: Shri K E Prakash

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION

## LOK SABHA UNSTARRED QUESTION NO. : 225

(To be answered on the 29 th 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 8090 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 nonscheduled flights coming for the purpose of MRO services in India.

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