Gandhinagar: India’s aircraft leasing ecosystem operating through GIFT City is expected to witness sharp growth over the next two years, with Union Civil Aviation Minister Rammohan Naidu Kinjarapu stating that the number of aircraft being leased from the IFSC could double as the country pushes to build a globally competitive aviation finance hub.
Speaking at the India Aircraft Leasing & Financing Summit 2.0 organised by the Ministry of Civil Aviation in association with FICCI and supported by International Financial Services Centres Authority, the minister said India’s rapidly expanding aviation market required a stronger domestic leasing ecosystem.
“Nearly 85% of India’s scheduled airline fleet is currently leased. As demand for aviation continues to rise, we want this leasing activity to increasingly happen within India, particularly through GIFT City,” he said.
The summit brought together policymakers, airlines, investors, global lessors, banks and financial institutions to discuss strategies for strengthening aircraft leasing and aviation financing capabilities within India.
Gujarat Chief Minister Bhupendra Patel said the state was emerging as a major aviation-linked investment destination under the leadership of Prime Minister Narendra Modi.
He said GIFT City had already leased over 370 aviation assets worth USD 5.8 billion and was playing a central role in India’s ambitions to reduce dependence on overseas leasing markets.
The Chief Minister also highlighted the Centre’s decision to extend the tax holiday for aircraft leasing companies in GIFT IFSC to 20 years in the Union Budget, calling it a major step towards strengthening India’s aviation financing ecosystem.
During the summit, multiple announcements and MoUs involving IndiGo, Air India, Akasa Air, Star Air, Bank of India and IFSCA were signed, indicating growing industry participation in GIFT City’s aviation leasing framework.
Industry leaders at the summit noted that India’s aircraft financing requirement could reach USD 170–200 billion over the next decade amid strong passenger growth and a record aircraft order pipeline exceeding 1,600 planes.
