India has steadily built an environment where the aviation industry is sustainable, affordable, safe, internationally competitive and connects to all parts of India and the world. Besides being the third largest market,India’s domestic passenger traffic has more than doubled from around 61 million in FY 2013-14 to around 137 million in 2019-20, a growth of over 14% per annum. India’s domestic air cargo handled grew by 8.24% (CAGR) between FY 2013-14 and FY 2019-20, while international air cargo grew by about 6% per annum.
Among the fastest growing in the world, it is poised to become the third largest civil aviation market by the year 2024. From more than 700 presently, the number of registered aircraft in scheduled operations is likely to reach 1,200 in the next few years. To its fleet of 06 dedicated freighters as in September 2018, India added 19, taking the total to 25 in January 2021.
The synergy is enormous with the defence sector, where India is the world’s second largest defence importer and third largest military spender. Both aviation and aerospace sectors have grown exponentially in last few years and form one of the critical enabler as well as clear indicator of India’s endeavours towards reaching a US$ 5 trillion economy in the coming years.
India being an engineering,financial and legal talent hub, capital markets need to step up and start growing their own ecosystem of aircraft financing and leasing which will create lucrative additional opportunities. The Indian Government has put in place the essential tax and regulatory elements towards the creation of such an indigenous aircraft leasing sectorconsisting of lessors and financiers’ resident in the International Financial Services Centre (IFSC) in India, that is, at the Gujarat International Finance Tec-City (GIFT- City).
In this regard, the Ministry of Civil Aviation and the IFSC Authority in collaboration with GIFT- City and FICCI are organising an India Aircraft Leasing Summit with the theme Rupee Raftaar on Friday, the 26thFebruary 2021 from 1500 to 1800 Hrs. Considering the present Covid-19 pandemic situation, the event is organised in hybrid mode where the physical event is held at the Vigyan Bhavan Convention Centre, New Delhi, and will also be hosted on the digital platform.