New Delhi, Dec 17 (IANS): The International Financial Services Centre Authority on Wednesday said many global aircraft leasing entities have shown interest in setting up shop at the GIFT City in Gujarat.

The Union Finance Ministry, which oversees the authority, in a statement, said: "Many global leasing entities have shown interest to set up leasing entity in IFSC in India as it provides them direct reach to one of the fastest-growing aviation markets in the world."

"Domestic airlines have also shown interest to undertake these transactions from IFSC in India as it provides them easy access to global lessors."

Consequently, IFSCA has prepared draft regulations for aircraft leasing and in order to get inputs from stakeholders as well as public comments.

"Based on the comments from the public, authorities would finalise the regulations and provide a framework for aircraft leasing entities to set up operations in IFSC," the statement said.

On October 16, the Centre, on the recommendation of the IFSCA, had notified 'Aircraft' lease, which shall include operating and financial lease and any hybrid of operating and financial lease of aircraft or helicopter and engines of aircraft or helicopter or any part thereof, as a financial product under the International Financial Services Centres Authority Act, 2019.

According to the ministry, India is poised to become the third-largest aviation market in the world by 2022.

In January 2019, India's Ministry of Civil Aviation published a report, 'Project Rupee Raftar', that provided a roadmap to developing an aircraft financing and leasing industry in India, and identified the International Financial Services Centre (GIFT city) for developing aircraft leasing and financing eco-system in the country.