India's Push for Efficient Aircraft & Ship Leasing: Expedited MRO Incentives

The Indian government is working towards creating an 'efficient and flexible' financing mode for leasing aircraft and ships. The 2024-25 Budget includes incentives for domestic aviation and ship MRO activities. Legislative approval will be sought for the plan, and efforts are being made to establish India as a significant hub for aircraft lessors and MRO services.

The Indian government aims to establish an 'efficient and flexible' financing mode for leasing aircraft and ships, coupled with pooled funds of private equity through a variable company structure.

The 2024-25 Budget has extended support to domestic aviation and ship MRO (Maintenance, Repair, and Overhaul) activities, with legislative approval pending.

Initiatives such as the extension of export periods and a uniform 5% GST rate on imported aircraft parts are designed to promote India as a hub for aircraft leasing and MRO services.