Strong push for local aircraft leasing marks Wings India 2026 opening session

Wings India 2026 advocates for a robust domestic aircraft leasing ecosystem to boost India's aviation growth and economic benefits.

A strong case for building a domestic aircraft leasing and financing ecosystem was made during the opening session of Wings India 2026 on Wednesday (January 28, 2026) at Begumpet Airport, Hyderabad, with representatives from regulatory authorities, banks, financiers, aircraft manufacturers and airlines calling for urgent policy and market reforms to anchor leasing activity within India.

The roundtable, the first session on the inaugural day of the event, underlined that aircraft leasing and financing has emerged as a high-priority area for the Indian Government.

Opening the discussion, Piyush Srivastava, Senior Economic Advisor, Ministry of Civil Aviation, said leasing already accounted for nearly 85% of India’s commercial fleet, significantly higher than the global average where around half of all aircraft are leased. Despite this dependence, he said, India continues to lose out on the economic upside of leasing as most aircraft are owned and financed overseas. “India should have a meaningful share in the proceeds of leasing, commensurate with what the country contributes to global aviation growth, if not more,” he said.

Several speakers flagged structural issues that continue to deter large-scale local leasing activity, including rolling taxation on non-residents, extension of sunset clauses on incentives, higher corporate tax rates and trust deficit among the investors.

Dipesh Shah, Executive Director of the International Financial Services Centres (IFSC), said GIFT City had already laid much of the foundation required for aircraft leasing and financing. Between 2023 and 2026, around 370 assets — including aircraft, engines and auxiliary infrastructure — were leased from GIFT City by 38 lessors, with about three-quarters of the leased aircraft owned and leased from the IFSC. With 37 banks operating there, Mr. Shah said, nearly 90 to 95% of the ecosystem required for aircraft leasing was now in place.

From a regulatory and operational standpoint, Airports Authority of India representative Pankaj Malhotra stressed that smooth aircraft induction, deregistration and repossession were critical to investor confidence. The official said effective implementation of the Cape Town Convention was essential to reduce risk perception and improve asset utilisation across the lifecycle.