Cabinet Approves Aircraft Leasing Bill to Boost Indian Aviation
The Union Cabinet has approved the Aircraft Leasing Bill, a key step toward transforming India into a global hub for aircraft leasing and financing. The move is part of the government’s broader vision to strengthen the Indian aviation sector and reduce dependence on foreign leasing firms.
The Bill aims to streamline regulations, making it easier for domestic and international companies to lease aircraft in India. It includes provisions for tax incentives, simplified procedures, and legal frameworks designed to encourage investments in aircraft leasing and financing operations within the country.
India’s aviation sector has been heavily reliant on foreign lessors, with most airlines leasing aircraft from overseas entities. This dependency often results in higher costs and limited financial flexibility for Indian carriers. By creating a domestic ecosystem for leasing, the government hopes to reduce these costs while fostering growth and self-reliance in the sector.
The Aircraft Leasing Bill is also expected to attract global players to set up operations in India, further boosting employment opportunities and economic growth. The initiative aligns with the government’s push under the “Make in India” and “Atmanirbhar Bharat” programs to localize critical sectors of the economy.
Experts believe the Bill could significantly enhance India’s competitiveness in the global aviation market while ensuring sustainable growth for domestic airlines.
