India is actively exploring the introduction of a fractional aircraft ownership policy, a move aimed at significantly boosting aviation financing and leasing within the country. Civil Aviation Minister Ram Mohan Naidu indicated that the government is also considering the classification of aircraft as infrastructure assets, a step that could unlock new avenues for investment and financial structuring in the sector.
This strategic policy shift is designed to enhance the capabilities of GIFT City, India’s international financial services centre, positioning it as a competitive hub for aviation leasing and financing on the global stage. The ambition is to rival established international centres such as Dublin, Singapore, and Dubai.
The proposed policy is expected to attract greater capital into the aviation sector by making aircraft ownership models more accessible and financially attractive. By treating aircraft as infrastructure, the government aims to simplify financing mechanisms and potentially offer more favourable regulatory and tax treatments, thereby encouraging both domestic and international investment in Indian aviation assets.
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