Prime Minister Narendra Modi inaugurated the Safran Aircraft Engine Services India (SAESI) facility at the GMR Aerospace and Industrial Park near Hyderabad airport via videoconferencing on Wednesday. This facility, established by the renowned French aerospace company Safran, marks India’s inaugural deep-level aircraft engine Maintenance, Repair and Overhaul (MRO) centre created by a global original equipment manufacturer.
During the inauguration, the Prime Minister remarked, “Today, India’s aviation sector is embarking on a new journey. Safran’s latest facility will position India as a prominent global MRO hub.” He emphasized that this facility would generate new prospects for the youth in the aerospace industry and highlighted that Safran’s leadership had shown confidence in India during discussions with him on November 24.
PM Modi pointed out that India’s aviation sector has experienced significant growth in recent years. “Presently, India ranks among the fastest-growing domestic aviation markets globally,” he stated, adding that the domestic market is now the third largest in the world. He noted that the increasing aspirations of the population are driving demand for air travel, with Indian airlines ordering over 1,500 new aircraft to satisfy future requirements.
Addressing the necessity for domestic MRO capacity, the Prime Minister mentioned that approximately 85 percent of India’s MRO operations were conducted overseas, leading to increased costs and prolonged aircraft downtime. “Such a circumstance is unsuitable for a vast aviation market like India,” he asserted. He further indicated that India aims to become one of the leading MRO hubs globally and highlighted that “for the first time, a global OEM is setting up deep-level servicing facilities in the nation.”
He remarked that Safran’s training initiatives and knowledge transfer would contribute to developing a skilled workforce. He added that the company’s collaborations with Indian institutions would invigorate the MRO ecosystem. PM Modi also stated that India is cultivating an MRO ecosystem beyond the aviation sector, including in maritime.
The Prime Minister encouraged Safran to consider designing aircraft engines and components within India. He pointed out that the country’s MSME network and youthful talent pool could facilitate such endeavors. He also expressed that India desires global firms to leverage the nation’s capabilities in propulsion design and manufacturing.
PM Modi asserted that India is making bold choices to enhance its economic landscape. “We are dreaming big, achieving even greater, and delivering the best,” he stated.
Highlighting recent reforms, he noted that India has streamlined regulations, broadened avenues for foreign investment, and enacted policies to enhance the ease of doing business.
He declared, “India is open to investments, and India is open to innovation.” He added that India has eliminated over 40,000 company compliances, decriminalized numerous business-related provisions, and consolidated approvals onto a single platform via the National Single Window System. He mentioned that GST reforms, faceless tax systems, new labor codes, and the Insolvency and Bankruptcy Code have simplified and made processes more transparent.
PM Modi highlighted that India perceives investors as key partners. “In India, we view individuals who invest not just as investors, but as co-creators – integral contributors in our journey toward becoming a developed nation,” he remarked. In wrapping up his speech, he stated, “India is demonstrating that investing in India is the most astute business choice of this decade.”
Telangana Chief Minister A. Revanth Reddy, who was present at the inauguration in Hyderabad, expressed enthusiasm for Safran’s investment. “I extend my congratulations to Safran for selecting Hyderabad for such a significant investment. This new facility represents a crucial milestone for the advancement of Telangana in the aerospace and defense sectors,” he noted.
He mentioned that the MRO center would create employment for over 1,000 skilled technicians and engineers while generating opportunities for local MSMEs. Reddy further revealed that the foundation stone for the Safran M88 military engine MRO facility was also laid on Wednesday. “This MRO will provide support to the Indian Air Force and Indian Navy,” he added.
The Telangana Chief Minister indicated that Hyderabad has emerged as a pivotal hub for aerospace and defense manufacturing, hosting global companies like Boeing, Airbus, Safran, and Bharat Forge in the city. He stated that the state’s exports in the aerospace and defense domain reached ₹30,742 crore in FY2024, surpassing pharmaceutical exports for the first time.
The SAESI facility, which spans 45,000 sq. m within the GMR Aerospace and Industrial Park, has been established with an investment of approximately ₹1,300 crore. It is designed to service up to 300 LEAP engines annually and is projected to employ over 1,000 technicians and engineers by 2035. The LEAP engine powers the Airbus A320neo and Boeing 737 MAX aircraft.
According to the government, this project aligns with India’s ambition to develop indigenous MRO capabilities, minimize foreign exchange expenditure, and enhance supply-chain resilience. Recent policy initiatives – including GST rationalization, the National Civil Aviation Policy 2016, and MRO Guidelines 2021 – have been focused on streamlining operations within the sector.
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