India Aircraft Leasing Summit 2.0: Key Announcements, GIFT City Plans and Aviation Finance Updates
India Aircraft Leasing and Financing Summit 2.0 at GIFT City focused on aircraft leasing, aviation finance, PIAO Act, airline expansion and opportunities.
By Srajan Agarwal | 2026-05-09T14:50:15.141360+05:30
India’s aviation sector is entering a new phase where the focus is not only on adding more aircraft and airports, but also on building a strong financing and leasing ecosystem within the country.
In this direction, the Ministry of Civil Aviation, Government of India, jointly with the International Financial Services Centres Authority (IFSCA) and FICCI, organised the 2nd edition of the India Aircraft Leasing and Financing Summit 2.0 at GIFT City, Gandhinagar, Gujarat, on May 8, 2026.
The summit was presided over by Union Civil Aviation Minister Shri Ram Mohan Naidu Kinjarapu, while Gujarat Chief Minister Shri Bhupendra Patel attended as the Chief Guest. The event brought together leaders from aviation, banking, aircraft leasing, policy, regulation, legal services, taxation, airlines and financial institutions to discuss how India can make GIFT IFSC a globally competitive hub for aircraft leasing and aviation finance.
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Why This Summit Matters?
- India is one of the fastest-growing aviation markets in the world.
- Airlines in India are placing large aircraft orders to meet rising passenger demand.
- Aircraft leasing is a major part of airline expansion, but much of this business has traditionally been handled through foreign jurisdictions.
- The government wants to bring more aircraft leasing, financing and ownership structures to India through GIFT City.
- The summit focused on how GIFT IFSC can become a strong alternative to global aviation finance centres.
Key Update: India’s Aircraft Fleet Set for Major Growth
One of the biggest takeaways from the summit was the scale of India’s aviation opportunity.
Union Civil Aviation Minister Shri Ram Mohan Naidu said that India’s commercial aircraft fleet is expected to reach 1,100 aircraft by 2027 and expand further to over 2,250 aircraft by 2035. He also highlighted that Indian carriers currently have outstanding deliveries of around 1,640 aircraft, creating a major leasing and financing opportunity for the country.
According to the Minister, this represents a USD 50 billion opportunity for India’s aircraft leasing ecosystem over the coming decade. This is why the government is pushing for a domestic aviation financing framework that can support airlines, attract global lessors and reduce dependence on overseas leasing hubs.
What Shri Ram Mohan Naidu Said?
- India is not just growing as an aviation market; it is also working to become a serious player in aviation financing and leasing.
- Under the leadership of Prime Minister Shri Narendra Modi, India is positioning itself as an emerging global aviation finance jurisdiction.
- A strong aircraft leasing ecosystem is needed because Indian airlines are expected to add a large number of aircraft in the coming years.
- The focus is now on making GIFT IFSC a trusted platform for airlines, lessors, banks, investors and global aviation companies.
- Aircraft leasing operations at GIFT City are expected to grow rapidly, with reports quoting the Minister as saying that leasing activity at GIFT City may double over the next two years.
Government Support for Airlines
The Union Civil Aviation Minister also highlighted the government’s measures to support Indian airlines and maintain operational stability.
Key support measures mentioned include:
- ATF price increase capped at 25 percent
- Landing and parking charges reduced by 25 percent across airports
- Credit support measures extended to airlines
- Credit Line Guarantee Scheme approved with an outlay of ₹5,000 crore
The Minister said the Credit Line Guarantee Scheme is aimed at easing liquidity pressure faced by airlines. These steps are important because aviation is a capital-heavy business, and airlines often face pressure from fuel costs, airport charges, financing costs and currency fluctuations.
Gujarat’s Role in Aviation and GIFT City
Gujarat Chief Minister Shri Bhupendra Patel said that Gujarat remains committed to strengthening GIFT City as a global financial and fintech hub. He also underlined the state’s growing aviation infrastructure and new airport development projects.
He invited global aviation and finance stakeholders to participate in Gujarat’s aviation growth journey. The Chief Minister also said that GIFT City’s aircraft leasing and financing ecosystem will play an important role in making India more self-reliant in the aviation sector.
MoCA’s View: Aviation Growth Beyond Passenger Traffic
Shri Samir Kumar Sinha, Secretary, Ministry of Civil Aviation, said India’s aviation growth story is now moving beyond passenger traffic.
He pointed out that the next stage of growth will include:
- Aircraft ownership
- Aircraft financing
- Leasing structures
- Financial innovation
- Long-term investment in aviation assets
He also said efforts are underway to bring long-term domestic capital from financial institutions, insurance companies, pension funds and infrastructure financing institutions into the aviation sector.
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Major Announcements at the Summit
The summit also saw several important announcements from airlines and industry players.
- AI Fleet Services IFSC Ltd, linked to Air India, announced plans to expand its portfolio from over 50 aircraft to 76 aircraft by March 2027.
- InterGlobe Aviation Financial Services IFSC, linked to 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 unit will 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 at GIFT IFSC. The entity will lease Embraer E190 aircraft in May 2026, and Star Air aims to lease 6 to 8 more regional aircraft from GIFT IFSC in FY 2027.
- KPMG, in collaboration with MoCA and FICCI, announced the release of its report titled “Advancing the aircraft leasing ecosystem in India – From reforms to powering future growth.”
DGCA’s Regulatory Clarity
The Directorate General of Civil Aviation also provided clarity on the evolving framework for aircraft leasing, financing and asset recovery.
The implementation framework linked to the Cape Town Convention was highlighted as a major step towards improving confidence among lessors and strengthening India’s civil aviation ecosystem.
The India Aircraft Leasing and Financing Summit 2.0 has made one thing clear: India wants to become more than a high-growth aviation market. The country now wants to build the financial backbone that supports aircraft ownership, leasing, financing and asset management from within India.
With GIFT City emerging as the centre of this ambition, the government, regulators, airlines, financiers and industry players are working together to create a globally trusted aviation finance ecosystem.
The latest announcements from Air India, IndiGo, Akasa Air and Star Air show that Indian carriers are already beginning to use GIFT IFSC for their aircraft leasing plans. At the same time, legal reforms like the PIAO Act, tax benefits, SPV structures and regulatory support are helping build confidence among investors and lessors.
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