India is seeking to strengthen its domestic aircraft leasing and aviation financing ecosystem through GIFT IFSC, with the country’s commercial aircraft fleet projected to reach 1,100 aircraft by 2027 and expand to over 2,250 aircraft by 2035.
The Ministry of Civil Aviation, jointly with the International Financial Services Centres Authority (IFSCA) and the Federation of Indian Chambers of Commerce & Industry (FICCI), organised the second edition of the India Aircraft Leasing and Financing Summit 2.0 at GIFT City, Gandhinagar, Gujarat, on Friday, 8 May 2026.
Union Civil Aviation Minister Ram Mohan Naidu presided over the summit, while Gujarat Chief Minister Bhupendra Patel attended as the Chief Guest.
The summit brought together experts from policy, finance and the aviation industry to discuss ways to strengthen GIFT IFSC’s role in aircraft leasing and aviation finance, with a focus on developing it as an emerging global hub.
Speaking at the summit, Naidu said India is positioning itself not only as one of the world’s fastest-growing aviation markets, but also as an emerging global aviation financing and leasing jurisdiction.
Highlighting the scale of opportunity in the sector, he said, “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.”
The minister said the expected expansion of India’s commercial fleet across aircraft categories underlines the need for a strong domestic financing and leasing ecosystem to support future growth.
Naidu also highlighted commitments fulfilled after the first India Aircraft Leasing and Financing Summit.
He referred to the enactment of the Protection of Interests in Aircraft Objects (PIAO) Act, 2025, calling it a landmark reform that aligns India’s legal framework with the Cape Town Convention.
“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 minister also announced that the constitution of a High-Level Stakeholder Committee for leasing, another assurance made after the first summit, has also been fulfilled.
Naidu said the government has taken steps to support the operational stability and long-term growth of Indian airlines.
He noted that ATF price increases have been capped at 25%, landing and parking charges have been reduced by 25% across airports, and credit support measures have been extended to airlines.
Referring to a recent Cabinet decision, he said the Union Government has approved a Credit Line Guarantee Scheme with an outlay of ₹5,000 crore to ease liquidity pressures faced by airlines.
Gujarat Chief Minister Bhupendra Patel reaffirmed the state’s commitment to strengthening GIFT City as a global financial and fintech hub.
He also pointed to Gujarat’s expanding aviation infrastructure, including new airport development projects, and invited global stakeholders to participate in the state’s aviation growth journey.
IFSCA Chairperson K Rajaraman said GIFT IFSC currently hosts aircraft lessors and aviation financing structures covering aircraft, engines, helicopters and other aviation assets.
He highlighted reforms including the extension of the tax holiday framework, operationalisation of the single-window IT system, and the introduction of SPV and trust structures.
Civil Aviation Secretary Samir Kumar Sinha said India’s aviation growth story is expanding beyond passenger traffic into ownership, financing and financial innovation.
He said efforts are underway to channel long-term domestic capital from financial institutions, insurance entities, pension funds and infrastructure financing institutions into the aviation sector.
The summit also saw several industry announcements.
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AI Fleet Services IFSC Ltd (Air India) announced plans to expand its portfolio from over 50 aircraft to 76 aircraft by March 2027.
InterGlobe Aviation Financial Services IFSC (IndiGo) announced plans to expand its portfolio from around 75 aircraft to nearly 150 aircraft during the same period.
Akasa Air announced the establishment of Akasa Air Leasing IFSC Private Limited at GIFT City.
The entity is expected to support Akasa Air’s fleet expansion through leasing of around 60 aircraft over the next five years.
Star Air announced the establishment of Ghodawat Aviation IFSC Pvt Ltd in GIFT IFSC to lease Embraer E190 aircraft in May 2026.
In FY 2027, Star Air aims to lease 6 to 8 more regional aircraft from GIFT IFSC.
The plenary session concluded with the signing of an MoU between IFSCA and FICCI to promote GIFT IFSC as an international financial centre and a global hub for aviation finance.
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