New Delhi. 17 December 2020. India is poised to become the 3rd largest aviation market in the world by 2022. Ministry of Civil Aviation published a report, ‘Project Rupee Raftar’, that provided roadmap to developing an aircraft financing and leasing industry in India. The report identified International Financial Services Centre (GIFT city) for developing aircraft leasing and financing eco-system in the country.
Recently Government of India , on the recommendation of IFSCA, had notified ‘Aircraft lease which shall include operating and financial lease and any hybrid of operating and financial lease of aircraft or helicopter and engines of aircraft or helicopter or any part thereof’ as a financial product under International Financial Services Centres Authority Act, 2019.
Considering, Aircraft leasing is a relatively new industry in India and Aircraft Leasing related regulations are different across various financial centres, IFSCA has prepared draft regulations for Aircraft Leasing and in order to get inputs from stakeholders as well as public comments.
Many global leasing entities have shown interest to set up leasing entity in IFSC in India as it provides them direct reach to one of the fastest growing aviation markets in the world. Domestic Airlines have also shown interest to undertake these transactions from IFSC in India as it provides them easy access to global lessors.