India Pushes For Aircraft Leasing Ecosystem At GIFT City

(MENAFN- KNN India) Gujarat, Apr 16 (KNN) The Ministry of Civil Aviation has called on the Ministry of Finance to support the development of an aircraft leasing ecosystem at Gujarat International Finance Tec-City (GIFT City).

This move comes amid concerns over the slow progress in establishing aircraft leasing in India, a critical area for the growth of the aviation sector.

A senior government official highlighted the need for Indian banks and financial institutions to adopt global best practices for aircraft leasing.

This includes embracing asset-backed aircraft financing and establishing a robust security framework, which has been facilitated by the recent passage of the Cape Town Convention Bill.

The Cape Town Convention, a global treaty designed to protect the rights of aircraft lessors, is expected to boost investor confidence and attract international leasing companies to India.

By aligning with international standards, the Indian government aims to position GIFT City as a major hub for aircraft leasing, fostering economic growth and improving the domestic aviation market's competitiveness.

While the push for aircraft leasing has been a long-standing goal, the slow pace of progress has raised alarms.

The collaboration between the ministries of Civil Aviation and Finance is seen as a vital step in creating a sustainable and thriving leasing ecosystem that could transform the aviation landscape in India.

As the sector grows, Indian banks and financial institutions are expected to play a key role in facilitating aircraft financing, bringing India closer to becoming a global aviation leader.

(KNN Bureau)

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