India Positions GIFT City as Global Aviation Financing Hub at Aircraft Leasing Summit 2026

Highlighting the scale of opportunity, the Minister projected massive expansion in India’s commercial aviation fleet over the coming decade.

India has intensified its push to emerge as a major global aviation financing and aircraft leasing destination, with the Government unveiling a series of reforms, investment commitments and industry expansion plans at the 2nd India Aircraft Leasing and Financing Summit 2.0 (IALFS 2.0) held at GIFT City in Gujarat.

Organised jointly by the Ministry of Civil Aviation (MoCA), the International Financial Services Centres Authority (IFSCA) and FICCI, the summit brought together aviation leaders, global lessors, financial institutions, regulators and policymakers to accelerate the development of India's aircraft leasing ecosystem and position GIFT IFSC as a globally competitive aviation finance hub.

The event was presided over by Union Civil Aviation Minister Shri Ram Mohan Naidu, while Gujarat Chief Minister Shri Bhupendra Patel attended as Chief Guest.

India's Aviation Fleet Expected to Exceed 2,250 Aircraft by 2035

Addressing the summit, Civil Aviation Minister Shri Ram Mohan Naidu said India is rapidly transforming from one of the world's fastest-growing aviation markets into an emerging global aviation financing and leasing jurisdiction.

Highlighting the scale of opportunity, the Minister projected massive expansion in India's commercial aviation fleet over the coming decade.

"India's commercial aircraft fleet is expected to reach 1,100 aircraft by 2027 and further expand to over 2,250 aircraft by 2035. Indian carriers currently have outstanding deliveries of 1,640 aircraft. That translates into a USD 50 billion opportunity for India's leasing ecosystem over the coming decade," he said.

The projections underline India's rapidly growing aviation demand driven by expanding middle-class travel, regional connectivity growth and rising international traffic.

GIFT City Emerging as India's Aviation Finance Gateway

The summit focused heavily on strengthening GIFT IFSC (Gujarat International Finance Tec-City International Financial Services Centre) as a competitive global platform for:

• Aircraft leasing

• Aviation financing

• Asset management

• Aviation investment

• Financial structuring

Officials said the government aims to gradually reduce India's dependence on foreign leasing jurisdictions such as Dublin and Singapore by creating a robust domestic ecosystem for aviation finance.

IFSCA Chairperson Shri K. Rajaraman noted that GIFT IFSC already hosts leasing and financing structures involving:

• Commercial aircraft

• Aircraft engines

• Helicopters

• Aviation assets

He highlighted recent reforms including:

• Extension of tax holiday frameworks

• Operationalisation of single-window IT systems

• Introduction of SPV and trust structures

as key foundations for globally accepted financing models.

Landmark Aviation Law Reforms Unveiled

A major focus of the summit was the government's recent legal and regulatory reforms aimed at improving investor confidence in India's aviation leasing market.

Shri Ram Mohan Naidu highlighted the enactment of the Protection of Interests in Aircraft Objects (PIAO) Act, 2025, describing it as a landmark reform aligned with the Cape Town Convention.

The Minister said the legislation addresses longstanding concerns among global lessors regarding delays in exercising IDERA (Irrevocable Deregistration and Export Request Authorisation) rights in India.

"For years, lessors faced prolonged delays in exercising their IDERA rights, increasing costs for Indian airlines and ultimately impacting passengers through higher airfares. That gap has now been addressed," he said.

The DGCA also provided further regulatory clarity during the summit regarding aircraft leasing, financing and asset recovery frameworks linked to Cape Town Convention implementation.

Government Announces Financial Support Measures for Airlines

The Minister also outlined several government measures aimed at stabilising and supporting India's aviation sector amid rapid expansion.

According to Shri Ram Mohan Naidu:

• ATF (Aviation Turbine Fuel) price increases have been capped at 25%

• Landing and parking charges across airports have been reduced by 25%

• Credit support measures for airlines have been expanded

He also revealed that the Union Cabinet recently approved a ₹5,000 crore Credit Line Guarantee Scheme to ease liquidity pressures faced by airlines.

The Minister claimed that few governments globally have implemented similar large-scale support mechanisms for the aviation sector.

Major Airline Leasing Expansion Announcements

The summit witnessed several major announcements from Indian airlines regarding fleet expansion and leasing operations through GIFT City.

Air India Expanding Leasing Portfolio

AI Fleet Services IFSC Ltd, linked to Air India, announced plans to expand its aircraft portfolio:

• From over 50 aircraft

• To 76 aircraft by March 2027

IndiGo Plans Massive Growth

InterGlobe Aviation Financial Services IFSC, associated with IndiGo, announced plans to nearly double its leasing portfolio:

• From around 75 aircraft

• To nearly 150 aircraft by March 2027

Akasa Air Enters GIFT City Leasing Ecosystem

Akasa Air announced the establishment of:

Akasa Air Leasing IFSC Private Limited (AALI) at GIFT City.

The new entity will support leasing of approximately 60 aircraft over the next five years to support the airline's fleet expansion strategy.

Star Air Expands Regional Aircraft Leasing

Star Air announced the creation of:

Ghodawat Aviation IFSC Pvt Ltd in GIFT IFSC to lease Embraer E190 aircraft beginning May 2026.

The airline plans to lease an additional 6 to 8 regional aircraft from GIFT IFSC during FY 2027.

Financial Institutions Push for Deeper Aviation Finance Market

Banks, financial institutions and lessors participating in the summit emphasized the need to develop a deeper and more competitive aviation financing ecosystem within GIFT IFSC.

Discussions focused on:

• Refinancing mechanisms

• Secondary aircraft financing markets

• Pooled funding structures

• Asset-based financing models

• Domestic aircraft financing capabilities

Stakeholders also highlighted the need for greater clarity on:

• Taxation

• Double Taxation Avoidance Agreements (DTAA)

• Regulatory certainty

• Talent availability

• Customs procedures

FICCI and IFSCA Sign MoU

The summit concluded with the signing of a Memorandum of Understanding between IFSCA and FICCI aimed at jointly promoting GIFT IFSC as:

• An international financial centre

• A global aviation finance hub

India Aiming to Become Global Aviation Finance Powerhouse

Industry experts say India's aviation leasing market could become one of the world's largest over the next decade due to massive aircraft acquisition plans by Indian carriers.

India currently remains one of the fastest-growing aviation markets globally, with airlines placing record aircraft orders amid rising passenger demand and regional aviation expansion.

The government's broader strategy seeks to ensure that a larger share of aircraft financing, leasing and asset management activities take place domestically through GIFT IFSC rather than overseas jurisdictions.

Officials believe this could help:

• Reduce financing costs

• Improve financial resilience

• Develop domestic capital markets

• Create high-value financial services jobs

• Strengthen India's global aviation position

As India's commercial aviation sector expands rapidly, policymakers are increasingly viewing aviation financing as a strategic growth area capable of transforming GIFT City into a major international financial hub.