EU-India Free Trade Agreement Poised to Transform Aviation Sector
Bengaluru: Annett Baessler, deputy consul general of the German Consulate General in Bengaluru, emphasized the significant potential of the proposed EU–India Free Trade Agreement to foster robust collaboration in the aviation industry. Speaking at the 9th International Conference on the Future of Aviation and Aerospace 2026, hosted by IIM Bangalore in partnership with TBS Education, France, she outlined key opportunities in maintenance, repair and overhaul (MRO), workforce development, and deeper sectoral integration. These initiatives could create a powerful new momentum between India and Europe, leveraging Europe's highly integrated aviation market, which gives German and European companies a competitive edge on the global stage.
India's Aviation Growth and European Support
India, currently the fifth-largest aviation market worldwide, is projected to ascend to the third-largest position within the next decade. The nation is rapidly emerging as a major manufacturing and design hub, with European firms actively supporting this expansion. For instance, Airbus alone holds approximately 1,250 aircraft orders from Indian clients, underscoring the strong demand and partnership. Additionally, India's MRO sector is forecasted to reach an impressive $9.5 billion over the coming decade, highlighting substantial economic opportunities.
Expert Insights on MRO and Industry Potential
Prof S Raghunath, conference chair at IIM Bangalore, elaborated on the strategic focus areas. "Our opportunity lies in leading in maintenance, repair and overhaul (MRO), as well as lifecycle intelligence," he stated. "This is an area where we are more than capable. For decades, we have been the IT backbone of the world. Given that strength, it is not difficult for us to recognise a simple reality: While aircraft sales generate revenue, far greater value lies in keeping those aircraft operational. We already have the technology, the engineering talent, and the skilled workforce needed to capitalise on it."
Market Penetration and Indigenous Development
During a panel discussion on "Market Potential of Aviation and Aerospace in India," Sunil Bhaskaran, director of Air India Aviation Academy, Air India, noted that air travel penetration in India remains at about one-tenth of the population, indicating immense potential for growth. In another panel on "Make in India - The Achievements of Indian Companies," Kota Harinarayana, former programme director and chief designer of Tejas Light Combat Aircraft, reflected on India's progress. "Three decades ago, India took the initiative to launch Tejas in military aviation, and today, we not only produce quality combat aircraft in numbers, but we are also developing the ecosystem - manufacturing, technology, and supply chains," he said. "In the next two decades, a range of state-of-the-art combat aircraft will be produced indigenously." However, he emphasized that civil aviation requires similar focused attention to achieve comparable advancements.
