NE BUSINESS BUREAU
AHMEDABAD, MAY 10
India’s ambitious bid to transform GIFT City into a global aircraft leasing and aviation finance powerhouse gathered massive momentum on Friday as policymakers, global aviation giants, financiers and industry leaders converged for the high-stakes India Aircraft Leasing & Financing Summit 2.0.
Hon'ble Civil Aviation Minister Shri Ram Mohan Naidu inaugurated the 2nd India Aircraft Leasing & Financing Summit at GIFT City alongside Hon’ble Chief Minister of Gujarat, Sh. Bhupendra Patel Ji and MoCA Secretary Shri Samir Kumar Sinha.
GIFT City, envisioned by Hon’ble Prime… pic.twitter.com/Sue27Tmpqe
— MoCA_GoI (@MoCA_GoI) May 8, 2026
Organised by the Ministry of Civil Aviation in association with Federation of Indian Chambers of Commerce & Industry and supported by the International Financial Services Centres Authority, the summit showcased India’s rapidly accelerating aviation growth story and its aggressive push to localise aircraft leasing operations currently dominated by overseas financial centres.
‘Aircraft Leasing from GIFT City to Double’
Delivering a major growth forecast, Union Civil Aviation Minister Rammohan Naidu Kinjarapu declared that the number of aircraft being leased through GIFT City is expected to double within the next two years, driven by India’s exploding aviation demand and sweeping policy reforms.
“Today, nearly 85 per cent of the aircraft in India’s scheduled fleet are leased. With India becoming the world’s third-largest domestic aviation market, we want this leasing activity to happen within India itself — especially from GIFT City,” the minister said.
The minister highlighted that the Centre has initiated a series of structural reforms to make India globally competitive in aviation financing, including ratification of the Cape Town Convention and legislative measures aimed at boosting investor confidence.
India’s Aviation Boom Sparks USD 200 Billion Opportunity
Industry leaders at the summit projected a staggering growth trajectory for India’s aviation sector over the next decade.
Jürgen Westermeier, who also serves as President and MD of Airbus India and South Asia, said India’s aircraft financing requirements could surge to USD 170-200 billion over the next 10 years.
“India’s order backlog currently exceeds 1,600 aircraft — more than double the country’s existing flying fleet. The scale of opportunity for global lessors and financiers is enormous,” he said.
He noted that India’s air passenger traffic is expected to grow at a CAGR of nearly 9 per cent in the coming decade, positioning the country as one of the world’s fastest-growing aviation ecosystems.
Gujarat Bets Big on Aviation-Led Economic Growth
Gujarat Chief Minister Bhupendra Patel said the state was rapidly emerging as a strategic hub for aviation-linked investments, including aircraft manufacturing, pilot training, advanced air mobility and leasing services.
“Under Prime Minister Modi’s leadership, India is flying with new confidence. GIFT City has already created a unique identity in the global fintech landscape and is now becoming central to India’s aviation finance ambitions,” Patel said.
The Chief Minister revealed that over 370 aviation assets worth USD 5.8 billion have already been leased through GIFT City.
He also highlighted the Centre’s decision in the Union Budget to extend the tax holiday for aircraft leasing companies operating from GIFT IFSC to 20 years, a move expected to attract global leasing majors to India.
Patel further underlined Gujarat’s expanding aviation infrastructure, including the high-profile Dholera Greenfield Airport project.
Mega MoUs Signal Leasing Ecosystem Momentum
In a strong signal of rising industry confidence, the summit witnessed the signing of multiple MoUs involving leading aviation and financial players including IndiGo, Air India, Akasa Air, Star Air, Bank of India and IFSCA.
The agreements are expected to accelerate the creation of a full-fledged domestic aircraft leasing ecosystem within India.
The summit also featured intensive discussions on building a globally competitive lessor ecosystem at GIFT IFSC and unlocking long-term aviation financing through policy reforms and investment participation.
UDAN Gets 10-Year Extension
In another major announcement, the Civil Aviation Minister said the government would extend the flagship UDAN regional connectivity scheme for another decade with a proposed investment of nearly Rs 29,000 crore.
The expansion plan includes the development of nearly 200 heliports across India, aimed at deepening regional air connectivity and expanding aviation access to underserved regions.
Senior policymakers including K Rajaraman, Samir Kumar Sinha and Amit Ray also addressed the summit.
With aircraft orders soaring, passenger traffic exploding and global financiers circling India’s aviation growth story, GIFT City is rapidly positioning itself as the country’s new runway for global aviation capital.
