Aircraft Leasing Market in India Presents a USD 100 Billion Financing Opportunity in the Next 20 Years
India, being one of the largest aviation markets in the world, has a huge opportunity for providing financing up to USD 100 billion in the aircraft leasing segment in the next 20 years, according to advisory firm Primus Partners. The expected demand for approximately 2,100 aircraft in the next two decades presents a significant opportunity for India’s aviation industry.
Currently, around 80 percent of the total commercial fleet in India is leased in comparison to 53 percent globally, which demonstrates the significant potential for growth in the aircraft leasing market in India.
Therefore, Primus Partners’ report titled ‘Aircraft Leasing Industry: Has India Nailed the Landing?’ highlights the importance of establishing a thriving leasing ecosystem in India to prevent Indian funds from being redirected abroad. It notes that domestic carriers finance their aircraft leases mainly through Ireland, Singapore, and Hong Kong, which results in the outflow of Indian funds.
Aircraft Leasing Industry
The report further states that an enabling and conducive aviation ecosystem with ample focus on the domestic leasing industry can propel India’s capability to tap into the USD 100 billion financing opportunity in the next 20 years. To achieve this, there is also a need to streamline processes and the regulatory environment. Primus Partners suggested that Gujarat International Finance Tec-City International Financial Services Centre (GIFT IFSC) has the potential to become the face of aircraft leasing in India.
The aircraft leasing sector estimates to be worth more than USD 150 billion globally and the report recommends strategic and definitive measures to boost the sector in India. Establishing an aircraft leasing ecosystem in India would not only keep Indian funds within the country but would also create new jobs and generate economic growth.
In conclusion, the market in India presents a significant financing opportunity of USD 100 billion in the next 20 years. The Indian government needs to take necessary steps to establish a thriving leasing ecosystem in the country, as highlighted in Primus Partners’ report, and Gujarat International Finance Tec-City International Financial Services Centre (GIFT IFSC) has the potential to become the face of aircraft leasing in India. If implemented successfully, this could generate new jobs, create economic growth, and keep Indian funds within the country.
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