GIFT City Takes Flight as India Pushes Aviation Leasing Revolution
Bilkul Bazaar | Sunday Special
Gandhinagar | 10 May 2026
India’s ambition to become a global aviation financing powerhouse received a major boost as the Ministry of Civil Aviation, in association with FICCI and supported by IFSCA, hosted the India Aircraft Leasing & Financing Summit 2.0 at GIFT City on Friday.
The summit brought together policymakers, airlines, investors, global lessors and financial institutions to accelerate the growth of India’s aircraft leasing ecosystem and position GIFT IFSC as a competitive international aviation finance hub.
Speaking at the event, Gujarat Chief Minister Bhupendra Patel said India’s aviation sector was witnessing “historic growth” under Prime Minister Narendra Modi’s leadership and added that GIFT City had become a major force in the country’s evolving fintech and aviation landscape.
“Under PM Modi’s leadership, India is flying with a new confidence. GIFT City has created a distinct identity in the global fintech segment and this summit will further accelerate the growth of India’s aviation sector,” Patel said.
Highlighting Gujarat’s expanding aviation ecosystem, Patel said the state was emerging as a hub for aircraft manufacturing, pilot training, advanced air mobility and leasing activities.
“For an Atmanirbhar Bharat, aircraft leasing must increasingly happen from GIFT City instead of overseas markets,” he said.
Patel revealed that more than 370 aviation assets worth USD 5.8 billion had already been leased through GIFT City, while also pointing to the development of the Dholera Greenfield Airport as part of Gujarat’s aviation infrastructure push.
Union Civil Aviation Minister Rammohan Naidu Kinjarapu said India had become the world’s third-largest domestic aviation market and noted that leasing would remain central to the country’s aviation expansion.
“Today, nearly 85% of our scheduled fleet is on lease. As demand for air travel rises rapidly, we want this leasing activity to happen within India itself, especially from GIFT City,” the minister said.
Kinjarapu expressed confidence that the number of aircraft leased through GIFT City would double over the next two years, driven by policy reforms and increasing investor confidence.
He also announced that the government would extend the UDAN regional connectivity scheme for another 10 years with an investment of nearly Rs 29,000 crore, including plans to develop around 200 heliports across India.
Jürgen Westermeier, Chairman of the FICCI Civil Aviation Committee and President & MD of Airbus India and South Asia, said India’s aviation sector was entering a transformative growth phase.
“Developing a strong indigenous leasing and financing infrastructure is crucial in helping India emerge as an integrated aviation destination for the world,” Westermeier said.
He added that India’s air passenger traffic was expected to grow at nearly 9% CAGR over the next decade, while aviation financing requirements could touch USD 170-200 billion.
“India currently has an order backlog of more than 1,600 aircraft — more than double the existing fleet. The opportunity for Indian and global lessors is immense,” he said.
The summit also witnessed several MoUs and announcements involving IndiGo, Air India, Akasa Air, Star Air, Bank of India and IFSCA, signalling growing momentum in India’s aircraft leasing ecosystem.
Industry sessions during the summit focused on building a stronger aircraft lessor ecosystem in GIFT IFSC and unlocking aviation financing growth through policy reforms and investments.
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