The latest FICCI-PwC report, titled “Unveiling Opportunities: Exploring India’s Leasing Landscape,” reveals the significant potential for growth in India’s leasing sector, driven by technological innovation, sustainability efforts, and evolving consumer preferences. The report highlights leasing as a critical enabler for growth across both private and public sectors, with a particular emphasis on financial inclusion for micro, small, and medium enterprises (MSMEs). By providing access to high-quality machinery, the leasing industry supports initiatives like ‘Atmanirbhar Bharat’ and ‘Make in India,’ advancing the nation’s self-reliance and manufacturing capabilities.

Rajiv Sabharwal, Chairman of FICCI’s National Committee on NBFCs and MD & CEO of Tata Capital, commented on the sector’s transformation. “The leasing industry in India is at the cusp of transformation, which is being shaped by a multitude of factors that are coming together. These factors include the entry of new players in the market including original equipment manufacturers (OEMs), diversification of asset classes and understanding the benefits of leasing as a financing tool for businesses. The industry is still at a nascent stage when compared to the progress seen in some of the more developed markets such Germany, Australia, Japan, the UK and the US.”

Echoing this sentiment, Sidharth Diwan, Partner – Digital & Strategy at PwC India, stated, “As India embarks on its journey towards sustainable growth and economic resilience, the leasing market assumes heightened significance. By fostering innovation, facilitating access to capital and promoting efficiency, leasing emerges as a catalyst for economic development and inclusive growth in the country.”

Key Insights from the Report:

GIFT City: A Catalyst for Leasing Industry Growth The exceptional infrastructure and business-friendly environment at GIFT City have positioned it as a hub for the leasing industry, attracting both global and domestic companies to establish operations.

Emerging Trends and Opportunities The rising demand for flexible, cost-effective solutions is driving interest in leasing services. Companies benefit from minimal upfront costs, enabling them to adapt and upgrade assets as needed. This client-centric model aligns with circular economy principles, emphasizing asset reuse and recycling. Leasing is extending into various sectors, including technology, agriculture, and renewable energy, promoting cross-industry collaboration.

Technological Transformation The leasing industry is embracing digital transformation, with advancements in robotic process automation (RPA), data analytics, artificial intelligence (AI), machine learning (ML), blockchain, and asset telematics. These technologies streamline processes, enhance risk assessment, and improve customer experiences. Innovations like remote asset inspections via drones and augmented reality herald a new era of efficiency and user satisfaction.

Sustainability in Leasing The push towards sustainable and green leasing is gaining momentum due to environmental concerns. Both lessors and lessees are integrating eco-friendly practices and incorporating environmental clauses and performance benchmarks into leasing contracts, promoting energy efficiency within the industry.

The FICCI-PwC report underscores the transformative potential of the leasing sector in India, driven by technology, sustainability, and consumer demand. As the industry evolves, it stands poised to significantly contribute to India’s economic growth and development.