Civil Aviation Minister K Rammohan Naidu on Tuesday emphasized that the Protection of Interests in Aircraft Objects Bill, 2025, will play a crucial role in strengthening India’s aircraft leasing industry and banking ecosystem. Speaking soon after the Rajya Sabha passed the bill, the minister highlighted how the legislation aims to resolve inconsistencies in leasing regulations, making India a more attractive destination for aircraft financing and leasing.
The minister underscored the significance of a robust leasing framework, stating that such a push was the need of the hour for the aviation sector. By aligning India’s regulatory environment with global standards, the bill is expected to enhance investor confidence and facilitate smoother transactions in aircraft leasing. This move is particularly relevant given India’s rapidly expanding aviation industry, which continues to see a surge in demand for aircraft amid increasing air traffic.
The legislation is designed to provide legal certainty to lessors and financial institutions, thereby reducing risks associated with aircraft repossession and defaults. The bill is also expected to encourage Indian banks and financial institutions to participate more actively in aircraft leasing, reducing the industry’s dependence on foreign lessors.
With the passage of this bill, India aims to position itself as a key player in the global aircraft leasing market, following the footsteps of major hubs like Ireland and Singapore. The initiative aligns with the government’s broader vision of strengthening the aviation sector and reducing the reliance on external leasing markets.
