EU Trade Treaty: Can India's Aircraft Maintenance Industry Secure European Certification?
India is strategically positioning its aviation maintenance sector to gain significant advantages from the recently concluded European Union trade agreement. Government officials reveal that the aviation ministry plans to use tariff concessions as leverage to push for reciprocal recognition of maintenance certifications between Indian and European regulators.
The Certification Challenge
Currently, India faces a substantial certification gap in its Maintenance, Repair, and Overhaul (MRO) industry. While approximately 149 facilities hold certification from India's Directorate General of Civil Aviation (DGCA), only about 10 possess either direct European Union Aviation Safety Agency (EASA) certification or reciprocal approvals from the European regulator.
The fundamental difference lies in certification approaches: DGCA certifies MRO facilities as complete entities, whereas EASA requires specific certifications for each facility, engine type, and service category. This procedural divergence creates significant barriers for Indian MROs seeking to service European-made aircraft.
Strategic Bargaining Position
"We are offering this as a bouquet offering of sorts," explained an anonymous official familiar with the negotiations. "We are bringing down duties on certain products for the EU, and as a reciprocal gesture, they take up our cause and harmonize standards, so that certification of Indian MROs happens. This is like a bargaining chip we are using."
The aviation ministry has been actively discussing this proposal with the commerce department as part of the broader Free Trade Agreement framework. The recently concluded EU-India trade deal, described as the "mother of all deals," creates a market of nearly two billion people with tariff eliminations on over 90% of traded goods.
Current Market Limitations
India's MRO industry currently handles approximately 95% of line and base maintenance work—primarily routine checks and quick repairs at airports. However, the more complex and lucrative engine and component maintenance work largely occurs overseas due to certification hurdles.
For perspective, India does not perform MRO work for wide-bodied Boeing jets, which are typically sent outside the country for maintenance. This represents a significant missed opportunity for the domestic industry.
Industry Perspectives on Harmonization
Sharad Agarwal, CEO of AIESL—India's largest and only state-backed MRO—highlighted the procedural differences between regulatory systems. "The EASA has a more detailed process. For instance, you need certification for every engine type separately, and so on. If harmonized with EASA, more MROs will get certification," he explained.
AIESL operates facilities in Thiruvananthapuram and Nagpur, representing the scale of India's existing MRO infrastructure that could benefit from European recognition.
Growth Potential and Economic Impact
India currently accounts for approximately 10% of the global MRO market, but policymakers believe harmonization with European standards could unlock substantially greater market share. This would enable Indian firms to service not only domestic fleets but also foreign aircraft operating throughout the region.
In August 2025, Civil Aviation Minister Murlidhar Mohol informed Parliament that India's MRO sector is projected to reach $4 billion by 2031, registering a Compound Annual Growth Rate (CAGR) of 8.9%—significantly higher than the global average of 5.6%.
Existing European Partnerships
European aircraft manufacturer Airbus already maintains extensive MRO services and technical support in India to cater to its growing fleet. The European consortium has established partnerships with Hindustan Aeronautics Ltd (HAL) for a heavy maintenance facility for A320 family aircraft in Nashik and collaborates with Indamer for helicopter maintenance.
These existing relationships demonstrate the foundation upon which broader certification harmonization could build, potentially transforming India into a regional hub for European aircraft maintenance.
Foreign Exchange Benefits
A successful push for mutual certification recognition would help India conserve valuable foreign exchange that currently flows overseas for complex maintenance work. By keeping more high-value maintenance within the country, India could strengthen its aviation ecosystem while improving its balance of payments position.
The coming months will reveal whether India's strategic use of tariff concessions as bargaining chips will successfully persuade European regulators to harmonize certification standards, potentially transforming the subcontinent's aircraft maintenance landscape.
