India’s aviation sector is set for significant expansion as Union Civil Aviation Minister Kinjarapu Rammohan Naidu announced that nearly 150 aircraft will be leased from Gujarat International Finance Tec-City (GIFT City) over the next two years. Speaking at the India Aircraft Leasing and Financing Summit 2.0 in Gandhinagar, the minister said the government aims to position GIFT City as a major global aviation financing and leasing centre comparable to hubs such as Dublin, Singapore and Dubai. The announcement reflects India’s growing push to reduce dependence on overseas leasing markets and strengthen domestic aviation financing infrastructure.

Naidu said India’s aviation industry has undergone rapid transformation over the past decade, driven by infrastructure development and rising passenger demand. He noted that the country is witnessing a sharp increase in air travel demand, while aircraft availability remains limited. According to the minister, nearly 85 percent of India’s scheduled airline fleet currently consists of leased aircraft, making leasing a critical component of the sector’s growth strategy. He added that Indian airlines are increasingly preferring leasing arrangements over direct aircraft purchases because of financial flexibility and operational efficiency.

The minister outlined major expansion plans by domestic carriers within GIFT City’s leasing ecosystem. IndiGo is expected to increase its aircraft leasing portfolio in GIFT City from around 75 aircraft to nearly 150 aircraft over the next two years. Air India plans to lease more than 75 aircraft from the hub, while Akasa Air intends to lease nearly 60 aircraft. Regional carrier Star Air is also expected to lease between six and eight aircraft. Naidu said these developments have been supported by policy reforms, simplified legal frameworks under the Cape Town Convention and tax incentives introduced by the Union government.

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Highlighting GIFT City’s progress, the minister said the aviation leasing ecosystem has expanded rapidly in recent years. By December 2025, GIFT City had registered 38 aircraft lessors and facilitated around 370 leased aviation assets valued at approximately 5.8 billion US dollars. Aviation financing worth nearly 615 million US dollars has also been routed through banking units operating under the International Financial Services Centres Authority framework. Naidu said the government has granted the leasing industry in GIFT City a 20-year tax holiday, which has helped attract international interest and investment into India’s aviation finance sector.

The minister also detailed the government’s broader aviation infrastructure plans, including the construction of 100 new airports and 200 heliports across India over the next decade. He said Gujarat is emerging as a key aviation hub due to rapid infrastructure growth and strong state government support. Naidu highlighted developments at Rajkot International Airport in Hirasar and said major upgrades are planned for Sardar Vallabhbhai Patel International Airport ahead of the 2030 Commonwealth events. He added that the Centre is also focusing on Dholera International Airport, which is being developed as a large aviation ecosystem linked to aircraft manufacturing and global markets.

Naidu also addressed the ongoing Ahmedabad aircraft crash investigation, stating that the probe has entered its final phase and a report is expected within a month. Referring to the investigation being conducted by the Aircraft Accident Investigation Bureau, the minister said the government is ensuring complete transparency, seriousness and impartiality throughout the process, particularly because international passengers were involved in the incident. He stressed that the investigation could not be rushed at the cost of credibility and accuracy. The minister further said the government is closely monitoring compensation and assistance being provided to the victims’ families while continuing support for the ongoing inquiry.

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