By CNBCTV18.com Feb 19, 2021 10:33:45 PM IST (Published)
The framework will enable aircraft operating lease business in IFSCs in India, the projected market size of which is over $50 billion
In 2019, when Finance Minister Nirmala Sitharaman was delivery her Budget speech, she said that it was the right time for India to enter into the aircraft financing and leasing business. This was critical for “development of self-reliant aviation industry” and creating, “aspirational jobs in aviation finance, besides leveraging the business opportunities available in India's Financial Special Economic Zone namely, International Financial Services Centre (IFSC).”
On October 16, 2020, the Government of India, on the recommendations of International Financial Services Centres Authority (IFSCA), notified the '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 ‘financial product’ under International Financial Services Centres Authority Act, 2019, read a statement issued by the Press Information Bureau.