NEW DELHI: India’s aviation sector received a major boost as Union Civil Aviation Minister Kinjarapu Rammohan Naidu announced that nearly 150 aircraft will be leased from GIFT City within the next two years.
Speaking at the India Aircraft Leasing and Financing Summit 2.0 in Gandhinagar, the minister said India is working to make GIFT City a global aviation finance and leasing hub similar to Dublin, Singapore and Dubai.
Linking the sector’s growth to Prime Minister Narendra Modi’s vision, Naidu said India’s aviation sector has seen a “revolutionary transformation” over the past 12 years, with rapid expansion in airports and aircraft fleets.
The minister said India’s biggest challenge now is a shortage of aircraft. “The demand is rising faster than the supply of planes,” he said, adding that nearly 85 percent of India’s scheduled airline fleet currently operates on leased aircraft.
He said airlines are increasingly preferring leasing models over direct purchases, making it important for India to develop domestic leasing facilities instead of depending on foreign hubs.
Naidu announced that major Indian airlines are expanding their leasing operations in GIFT City. IndiGo is expected to increase its leasing portfolio in GIFT City from 75 aircraft to nearly 150 aircraft over the next two years, while Air India will lease more than 75 aircraft from the hub. Akasa Air plans to lease around 60 aircraft, and Star Air is expected to lease six to eight aircraft from GIFT City.
The minister said the growth was supported by policy reforms, legal simplifications under the Cape Town Convention framework and tax incentives announced by Union Finance Minister Nirmala Sitharaman.
He said the leasing industry in GIFT City has been given a 20-year tax holiday. “The world is now looking at India,” the minister said.
According to Naidu, till December 2025, GIFT City had registered 38 aircraft lessors and facilitated 370 leased aviation assets worth nearly 5.8 billion US dollars. Aviation financing worth 615 million US dollars has also been routed through IFSCA banking units in GIFT City.
The minister said the government plans to build 100 new airports and 200 heliports across the country over the next decade. He added that Gujarat is emerging as a major aviation hub due to strong infrastructure growth and state government support.
Naidu said Rajkot International Airport at Hirasar reflects Gujarat’s aviation expansion. He also said Sardar Vallabhbhai Patel International Airport will undergo major upgrades ahead of the 2030 Commonwealth events, while the Centre is focusing heavily on Dholera International Airport.
According to the minister, Dholera is being developed as a large aviation ecosystem linked to aircraft manufacturing and global aviation markets.
Naidu also announced that seaplane services between Kochi and Lakshadweep will begin within the next two weeks. He added that the government plans to further expand the UDAN Scheme.
The minister also spoke about the ongoing Ahmedabad plane crash investigation, saying the probe has entered its final stage and the report is expected within a month.
Referring to the investigation by the Aircraft Accident Investigation Bureau, Naidu said the government has provided full support to investigators. He said the probe is being conducted with “full transparency, seriousness and impartiality,” especially because international passengers were involved.
“The process cannot be rushed merely for speed,” the minister said, adding that any lapse could raise questions over the credibility of the report.
He also said the government is monitoring compensation and support for the victims’ families.
