The inaugural session of the High-Level Committee (HLC) on Aircraft Leasing and Financing was convened under the leadership of Union Minister of Civil Aviation, Ram Mohan Naidu, on September 2, 2026. This gathering aimed to formulate a robust aircraft leasing and financing framework in India, aligning with the burgeoning expansion of the country’s aviation sector. The meeting attracted various officials from the Ministry of Civil Aviation, the Ministry of Finance, the Department of Commerce, the Directorate General of Civil Aviation (DGCA), the Reserve Bank of India (RBI), the International Financial Services Centres Authority (IFSCA), and industry representatives.

Key Discussions and Suggestions

During the meeting, Minister Naidu opened the dialogue by referencing the first Aircraft Leasing Summit conducted in GIFT City the previous year. He noted that one of the primary recommendations from this summit was the ratification of the Cape Town Convention, a suggestion that was subsequently addressed through the enactment of the Protection of Interests in Aircraft Objects Act. The minister highlighted that participants at the recent summit advocated for the establishment of a High-Level Committee, which facilitated the convening of this first meeting.

Emphasising the commercial viability of aircraft leasing, Naidu acknowledged the ongoing efforts to mitigate the associated risks through comprehensive legal and regulatory measures. He proposed that the committee should explore methods for increasing bank credit allocation to the aviation sector, as well as identifying potential joint ventures focused on technical and skill development within aircraft leasing.

The achievements of the government’s initiatives to promote aircraft leasing were also highlighted, with a report indicating that 422 assets, which include 250 aircraft and 87 engines, were leased through the International Financial Services Centre, with 474 leasing agreements successfully signed. This progress reflects the growing confidence of lessors in the Indian market.

Importance of Aircraft Leasing

In his remarks, Minister Naidu characterised aircraft leasing as integral to the rapid growth of India’s aviation sector, which has seen remarkable expansion under the guidance of Prime Minister Narendra Modi. With the acceleration of airport infrastructure development, where a new airport is operationalised approximately every 45 days, the availability of aircraft has emerged as a pressing challenge. Given that more than 85 per cent of the fleets operated by Indian carriers are leased, the minister underscored the critical need for ongoing engagement with stakeholders to enhance the leasing ecosystem.

As the meeting drew to a close, Naidu stressed the necessity for a coordinated and timely approach to resolving identified issues related to regulation, financing, and taxation within the aircraft leasing framework. The committee agreed on the importance of examining the proposed measures in consultation with relevant ministries and stakeholders to create a predictable policy environment for aircraft leasing and financing in India.

In summary, the meeting marked a significant step towards establishing a competitive aircraft leasing structure in India, reflecting the government’s commitment to advancing the aviation sector through collaborative strategies and effective policy frameworks.

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