Hyderabad, Jan. 29 -- The free trade agreement (FTA) between India and the European Union (EU) may not immediately lower costs for aircraft maintenance or spare parts, as India has already capped the tax on imports of most components at 5%.

The India-EU FTA eliminates tariffs on aircraft and spacecraft for almost all products, including aircraft parts and components, engines, avionics, landing gear, maintenance, repair and overhaul (MRO) inputs, which would offer only limited gains to the European spare parts suppliers.

As such, American aircraft maker Boeing does not expect the recently-concluded India-EU FTA to materially affect its maintenance and repair operations in India, even though the pact could marginally lower costs for its E...