India Seeks to Enhance Global Aircraft Leasing Ecosystem, Not Engage in Competition

India Aims to Establish Itself as a Major Player in Global Aircraft Leasing

India's Union Civil Aviation Minister, Rammohan Naidu, has emphasized the country's commitment to creating a favorable ecosystem for the aviation sector, with a focus on aircraft leasing and financing. Speaking at the India Aircraft Leasing and Financing Summit 2.0 at GIFT City, Naidu stated that India does not seek to compete with established global aircraft leasing hubs, but rather to complement them.

India's aviation sector is rapidly transforming, with the country poised to become the world's third-largest civil aviation market. Naidu highlighted that the country's commercial fleet is expected to reach 1,100 aircraft by 2027 and triple to 2,250 by 2032. In 2026 alone, India's passenger transit has touched 191 million, both domestic and international routes combined.

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The table above shows the growth rate and market share of key aviation markets.

Naidu noted that the Central government's reforms have shown results, with the GIFT IFSC now being home to 38 registered aircraft lessors as of December 2025. The Union minister also highlighted the government's efforts to deepen financing, with rupee-denominated financing being a strategic imperative.

To further support the growth of the aviation sector, the government is ensuring legal and tax reforms, robust dispute resolution capabilities, and institutional mechanisms at GIFT City. Naidu emphasized that aircraft leasing and financing business is the most profitable segment in the entire aviation value ecosystem.

India's legislation — the Protection of Interests in Aircraft Objects Act, 2025 — aligns the country's legal framework with the Cape Town Convention, and its impact has been profound. In the Union Budget of 2026, the government has formalized an extended tax horizon for IFSC leasing structures, providing long-term predictability that international investors need to commit capital with confidence.

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Naidu also highlighted the government's plans to launch seaplane operations next month or this month itself at Lakshwadeep, and the potential for seaplane leasing. With a record number of commercial pilot licenses issued in the last year and an outlay of more than Rs 29,000 crore committed for developing 100 airports and 200 helipads over the next 10 years, India is poised to become a major player in the global aviation sector.