Topic: Infrastructure: Energy, Ports, Roads, Airports, Railways etc. Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
5) As India becomes a large domestic and international aviation market, the need to create a local leasing community has gained significance. In this context examine the merits and demerits of the move taken by the government for creating a rupee-based leasing industry.(250 words)
Why this question:
The Finance Minister, in her maiden budget, laid the foundation of building an important component of the aviation sector following the release of the ‘Rupee Raftaar’ report at the Global Aviation Summit in Mumbai in January earlier this year.
Key demand of the question:
The answer must discuss in detail the nuances of the aircraft leasing industry and the potential it holds for India.
Examine – When asked to ‘Examine’, we have to look into the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications.
Structure of the answer:
Discuss the facts /current scenario of Aviation industry.
The answer must discuss the advantages and disadvantages of creating rupee-based leasing industry in the country.
Explain what all factors would it address, what will be the key objectives etc.
Creating a rupee-based leasing industry will address many objectives: (1) high-skill job creation in financing and across the value chain, (2) retaining economic value in India, (3) offering local savers a new investment class, (4) creating a product more-suited to the needs and requirements of the local industry.
Conclude with way forward and its significance.