Prime Minister Narendra Modi’s administration plans to make India a hub for financing aircraft purchases and leasing of planes, as the South Asian nation moves to support local carriers, which are among the biggest customers for Airbus SE and Boeing Co.
“As the world’s third largest domestic aviation market, the time is ripe for India to enter into aircraft financing and leasing activities from Indian shores,” Finance Minister Nirmala Sitharaman said in her maiden budget speech. “This is critical to the development of a self-reliant aviation industry, creating aspirational jobs in aviation finance, besides leveraging the business opportunities available in India’s financial Special Economic Zones.”
The ability to fund purchases and lease aircraft locally will be a boon for local carriers like InterGlobe Aviation Ltd.’s IndiGo and SpiceJet Ltd., as it will significantly insulate them from foreign exchange fluctuations. Read more