By TIOL News Service

NEW DELHI, DEC 17, 2020: INDIA is poised to become the third largest aviation market in the world by 2022 and many global aircraft leasing entities have shown interest in setting up shop at Gujarat's GIFT city.

The Ministry of Finance on Wednesday said the International Financial Services Centre provides these global organisations “direct reach to one of the fastest growing aviation markets in the world.”

Some domestic operators have also shown interest to undertake these transactions from IFSC as it provides them easy access to global lessors.

On 16 October, 2020, the Central government, on the recommendation of the International Financial Services Centre Authority (IFSCA), had notified ‘Aircraft lease' which would 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.

Consequently, IFSCA prepared draft regulations to get inputs from stakeholders and the public since aircraft leasing is a relatively new industry in India, the Finance Ministry said.

Based on the comments from public, the authority would finalize the regulations and provide framework for aircraft leasing entities to set up operations in IFSC.