India Targets $50 Billion Aviation Leasing Market
Government pushes GIFT City as global aircraft financing hub at Aviation Summit 2.0
- Ram Mohan Naidu projects massive aviation growth
- India’s aircraft fleet expected to cross 2,250 by 2035
- Major airlines announce expansion plans at GIFT City summit
- MoU signed to boost aviation financing ecosystem in India
GG News Bureau
New Delhi, 8th May: The Ministry of Civil Aviation, along with the International Financial Services Centres Authority (IFSCA) and FICCI, organised the second edition of the India Aircraft Leasing and Financing Summit 2.0 at GIFT City in Gujarat, focusing on positioning India as a major global aviation financing and leasing hub.
Union Civil Aviation Minister Ram Mohan Naidu said India’s aviation market is rapidly emerging as one of the world’s largest and highlighted the enormous opportunity in the aircraft leasing sector.
“India’s commercial aircraft fleet is expected to reach 1,100 aircraft by 2027 and further expand to over 2,250 aircraft by 2035,” the minister said while addressing the summit.
He added that Indian carriers currently have outstanding deliveries of 1,640 aircraft, translating into an estimated $50 billion opportunity for India’s leasing ecosystem over the next decade.
The summit was attended by Gujarat Chief Minister Bhupendra Patel, senior aviation officials, financial institutions, lessors and airline representatives.
Naidu highlighted key reforms undertaken after the inaugural summit in 2025, including the implementation of the Protection of Interests in Aircraft Objects (PIAO) Act, 2025, aimed at strengthening aircraft leasing protections and aligning India’s framework with international standards.
The minister also noted that the government had capped Aviation Turbine Fuel (ATF) price increases at 25 percent, reduced airport landing and parking charges, and approved a ₹5,000 crore Credit Line Guarantee Scheme to support airlines facing liquidity stress.
Major announcements were made during the summit by Indian carriers operating from GIFT IFSC.
Air India announced plans to expand its leased aircraft portfolio from over 50 aircraft to 76 by March 2027, while IndiGo said it aims to increase its portfolio to nearly 150 aircraft in the same period.
Akasa Air also announced the establishment of “Akasa Air Leasing IFSC Private Limited” at GIFT City to support leasing of around 60 aircraft over the next five years.
The summit concluded with the signing of an MoU between IFSCA and FICCI to promote GIFT IFSC as an international aviation finance hub.
Industry stakeholders discussed measures to deepen aircraft financing markets, improve refinancing mechanisms and strengthen India’s overall aviation leasing ecosystem.
