GIFT City Opens $5 Billion Leasing Opportunity for Indian Aviation Sector

Gujarat, Jul 12 (KNN) India’s aviation sector is set to gain a major boost with Gujarat’s GIFT City emerging as a key hub for aircraft leasing. 

According to industry estimates, GIFT City could unlock a $5 billion opportunity over the next 10 years, helping India reduce its dependence on foreign lessors and strengthening its position in global aviation finance.

Currently, nearly 70% of aircraft operated by Indian carriers are leased, mostly through global hubs like Ireland, Singapore, and Hong Kong. These arrangements often expose Indian airlines to foreign currency risks, higher leasing costs, and regulatory challenges. 

By shifting leasing operations to GIFT City’s International Financial Services Centre (IFSC), Indian airlines can benefit from a more favourable tax regime, ease of doing business, and improved financing options.

Several global and domestic players have already registered leasing entities at GIFT City, including major public sector banks like SBI, Bank of Baroda, and Union Bank of India, as well as leasing arms of conglomerates like Tata. 

Experts believe that with proper regulatory support and ecosystem development, India can create a competitive aircraft leasing market comparable to global hubs.

The initiative also aligns with the government’s vision to make India a major player in aviation finance and reduce capital outflows. GIFT City offers several incentives, including exemption from GST and other taxes, which make it attractive for both lessors and airlines.

Industry leaders have called for further policy clarity, infrastructure development, and skilled manpower to fully capitalise on this opportunity. If implemented well, the aircraft leasing model at GIFT City could not only cut costs for Indian airlines but also make India a global hub for aviation finance.

(KNN Bureau)