- Gandhinagar steps towards becoming Fintech hub of India
- India’s Roadmap for Aviation Leasing and Financing
Gandhinagar, Gujarat. 08 March 2025. The second “India Aircraft Leasing and Financing Summit,” jointly organized by the Union Ministry of Civil Aviation and the Federation of Indian Chambers of Commerce & Industry (FICCI), with support from the International Financial Services Centre Authority (IFSCA), highlighted India’s ambitions to establish itself as a global aircraft leasing and financing hub. The event, held at GIFT City in Gandhinagar, Gujarat, brought together industry leaders, policymakers, and financial experts to discuss the way forward for India’s aviation financing ecosystem.
Opening the summit, Civil Aviation Minister Ram Mohan Naidu emphasized the significance of GIFT City as a financial hub and its role in strengthening India’s aviation sector. “GIFT City will give India’s aviation sector the further required confidence, commitment, and collaboration to develop a competitive aircraft leasing hub,” he said, stressing that India aims to complement, rather than compete with, existing global financial centers.
Naidu further highlighted the need for financial innovation in India’s civil aviation sector, pointing out that the country has emerged as the third-largest domestic aviation market in the world. “Fuelled by the UDAN scheme and the doubling of India’s airports in 10 years, aircraft leasing is a key financial innovation that India’s growing aviation sector needs,” he stated.
The Minister outlined the government’s vision for expanding aviation infrastructure, announcing plans to build 350 airports by 2047, with 34 designated as mega airports handling at least two crore passengers annually. Over the next five years, 50 more airports will be constructed. “The UDAN scheme has been extended for another 10 years, connecting four crore passengers and creating 120 new destinations in India,” Naidu said, urging stakeholders to create a strong ecosystem for aircraft financing and leasing to enhance global competitiveness.
Gujarat Chief Minister Bhupendra Patel reaffirmed the state’s commitment to supporting aviation sector growth, emphasizing that GIFT City is well-positioned as India’s fintech hub. “This summit is crucial for the development of aircraft leasing and financing, contributing to India’s self-reliance in the aviation sector,” he said. Patel also credited the strong aviation ecosystem in India to reforms over the past decade under Prime Minister Narendra Modi’s leadership. “Our government is determined to make Gujarat the leader in the aviation sector by providing the necessary production capacity, infrastructure, and industry support,” he added.
Civil Aviation Secretary Vumlunmang Vualnam reiterated the government’s commitment to providing a stable regulatory framework to encourage investment in aircraft leasing and financing. “Indian carriers are looking at doubling their aircraft acquisitions in the next five years from 800 to around 1,500 aircraft,” he noted.
The summit featured plenary discussions on ‘Establishing an Aircraft Lessor Ecosystem in GIFT IFSCA’ and ‘Bridging Financial Gaps: Unlocking Growth in Aviation Financing through Policy & Investment.’ The interactive sessions witnessed active participation from global lessors, banks, insurance companies, legal experts, and airline representatives.
In his concluding remarks, Naidu assured industry stakeholders that the government remains committed to implementing key recommendations from the summit. He reiterated India’s focus on fostering a robust aircraft leasing ecosystem by collaborating with international financial hubs rather than competing with them.
India’s aviation sector is poised for unprecedented growth, with aircraft leasing and financing emerging as critical enablers of expansion. GIFT City’s rise as a financial hub provides a transformative opportunity to retain the economic benefits of aircraft leasing within the country. With the government’s continued policy support and infrastructure development, India is well-positioned to establish itself as a competitive player in global aviation finance.
