The aim of this paper is to critically evaluate the structure and prospects of the leasing industry in India. Financial data of 29 selected leasing companies are analyzed to formulate the strategic groups of the leasing companies. It is argued that the winners of future would be either those leasing companies which are large in size and affect economies of scale or those which are associated with business houses. The options available to new entrants for successful survival are to enter the leasing business either as a large company or a specialized company. Entry on a leasing-cum-manufacturing will pose difficulty in terms of government regulation, raising of large capital and managerial capability.