A New Chapter for Indian Aviation: What Happened

Prime Minister Narendra Modi on 26 November 2025 virtually inaugurated newly build SAESI facility, the first global aircraft engine MRO center in India created by a major global engine manufacturer. Situated at GMR Aerospace and Industrial Park (SEZ) at Rajiv Gandhi International Airport, Hyderabad, the facility marks a key milestone for the country’s ambition to deepen its footprint in the Global Aviation value chain

PM Modi termed the development as “a big step towards making India self-reliant in the field of aviation”, signaling a government push for domestic capabilities in critical sectors.

What is SAESI — and Why It Matters

The SAESI facility is dedicated to servicing LEAP engines, which are the state-of-the-art turbofan engines powering some of today’s most popular narrow-body aircraft fleets, such as Airbus A320neo and Boeing 737 MAX. What makes this facility unique is that it is one of the biggest global MRO centers for aircraft engines and represents the first time a global engine OEM has established such an operation in India. This also aligns with the bigger plan of making India a global MRO hub: to avoid dependence on overseas facilities and allow airlines to get local maintenance done with quicker turnaround times and at lower costs.

Scale, Capacity and Investment

The scale is considerable: 45,000 square meters within the aerospace park. The plant has been set up with an initial investment of about ₹1,300 crore When at full capacity (around 2035), SAESI will be able to overhaul 300 LEAP engines every year, employ more than 1,000 Indian engineers and technicians. With state-of-the-art process equipment and the latest MRO technology, the work done here is certain to meet global standards.

Strategic Significance: A Step Toward “Aatmanirbhar Bharat”

Leaders and officials have described the SAESI facility as a “giant LEAP towards self-reliance (Aatmanirbhar Bharat)” in the aviation sector. For long, the bulk of maintenance, repair, and overhaul of Indian aircraft engines-especially high-value tasks like shop visits for LEAP engines-were done abroad. This meant long turnaround times, high costs, and foreign exchange outflows. The new facility aims to reverse that. By localizing MRO work, India stands to gain on multiple fronts: cost savings, faster engine turnarounds, and a more resilient aviation supply chain. In addition, this development strengthens the government’s strategic thrust to build a strong domestic MRO ecosystem, for which there have been policy reforms in recent years as well.

Economic Impact: Jobs, Skills and Growth

One of the major benefits the SAESI facility provides is high-value employment for Indian youth. More than a thousand engineers and technicians will be gainfully employed when the center becomes fully functional. Over and beyond direct employment, the presence of a world-class MRO facility is likely to spur ancillary businesses-suppliers, component manufacturers, logistics providers-thereby creating an ecosystem around aerospace maintenance and overhaul.

For the area around Hyderabad/ Telangana, this is a big boost, too: the investment cements the city’s status as an emerging aerospace and defence hub in India.

Broader Implications: India as a Global Aviation Hub

With the inauguration of SAESI, it is a signal that India is not content with just being a big market; it wants to be a global hub for aerospace services. The ability to undertake global standard MRO work domestically makes India more competitive in the global aviation value chain. Considering the domestic aviation market is among the fastest-growing in the world, with airlines placing large orders for new aircraft, the demand for engine maintenance is all set to rise sharply. The facility places India in a position to fulfill that demand locally, rather than sending off engines abroad for an overhaul.

By offering world-class MRO services, the center could also attract business from international airlines operating LEAP powered aircraft, thereby giving India a competitive edge as a global MRO destination.

Policy, Timing and Industry Backdrop

SAESI has been launched at a time when the Indian government has promulgated quite a few facilitating policies for the MRO sector, namely: simplification of tax/GST regimes, particularly the reforms in GST in 2024, regulatory clarity provided by the MRO Guidelines 2021, and a supportive national aviation policy.

Together, these reforms have made India an attractive destination for global aerospace players to expand operations. A decision by a global engine OEM to set up MRO operations in India reflects growing confidence in India’s policy environment, technical talent pool, and market potential. At the inauguration, PM Modi called for more investors to see India not just as a destination for manufacturing but as co-creators in building a “developed India.”.”

Looking Ahead: What the Future Holds

With operations at SAESI set to ramp up over the next few years, India might just witness a transformation in the way engine maintenance, both for civilian and possibly even defense aircraft, is approached. It is likely that services at the facility will not remain limited to the LEAP family of engines but may include military-grade variants in due course of time, similar to the announcement made by the company earlier. That could mean shorter engine maintenance cycles for airlines, less grounding time for aircraft, and lower operating costs that might trickle down to passengers. For skilled Indian technicians and engineers, that means high-quality jobs and training in advanced aerospace technologies.

For India as a nation, the successful operation of SAESI would mark a concrete step in its march for building a globally competitive aerospace and MRO ecosystem and will help realize long-cherished aspirations of making India a global aviation services hub.

Conclusion

The inauguration of SAESI by PM Modi is more than a ribbon-cutting exercise; it’s a strategic pivot in India’s aviation journey. By combining global technology, substantial investment, and domestic talent, the facility lays the foundation for an indigenous, world-class engine maintenance infrastructure that strengthens self-reliance, increases jobs, reduces foreign exchange outflow, and places India as a serious contender on the global aerospace map.

As the facility ramps up in the coming years, it could well become a symbol of India’s rising stature in high-technology manufacturing and services — and a source of pride for a country with soaring aviation ambitions.