The Government of India and the International Financial Services Centres Authority (IFSCA) have established a regulatory framework under the IFSCA Act, 2019, to promote and regulate aircraft leasing activities in International Financial Services Centres (IFSCs). This includes recognizing operating, financial, and hybrid leases for aircraft, helicopters, their parts, ground support equipment, and aviation training devices as “financial products.”
The framework, detailed in the IFSCA Finance Company Regulations, classifies financial leasing as a core activity and operating leasing as a non-core activity, enabling entities to register as Finance Companies or Units to facilitate the growth of the aircraft leasing business in India and position the country as a global hub for aviation financing.
