India is projected to support a civil aviation fleet of around 2,250 aircraft by 2035, positioning the country to become the world’s third-largest aviation market as passenger growth, fleet expansion and financing requirements accelerate across the sector.
Speaking at the India Aircraft Leasing and Financing Summit 2.0 in Gujarat’s GIFT City, Union Civil Aviation Minister Kinjarapu Ram Mohan Naidu said the country’s aviation sector is undergoing structural transformation, with India seeking to build domestic leasing and aviation finance capabilities alongside airline expansion.
The minister said India’s aviation ecosystem is evolving from being primarily a consumer of international leasing services to becoming a participant in global aviation finance infrastructure.
“The expansion of aircraft leasing and financing capabilities within India marks a decisive step towards long-term sectoral self-reliance,” he said, according to IANS.
The government estimates that India’s aviation sector could generate opportunities worth approximately $50 billion in aircraft leasing over the next decade.
According to the minister, strong passenger growth and rising airline capacity requirements are increasing the need for domestic financing and leasing mechanisms capable of supporting large-scale fleet expansion.
Key projections highlighted at the summit included:
The projections underline the scale of financing required to support India’s rapidly expanding airline industry over the coming decade.
The government said Gujarat International Finance Tec-City, commonly known as GIFT City, is emerging as a strategic centre for aircraft leasing and aviation finance activity in India.
According to the minister, the ecosystem has developed with regulatory and financial infrastructure designed to attract global aviation financing players.
He said strengthening domestic leasing capacity is important for reducing dependence on overseas jurisdictions traditionally used by Indian airlines.
“This ecosystem is critical for reducing dependency on foreign leasing jurisdictions and building domestic capacity in aviation finance,” the minister said.
The summit focused heavily on expanding India’s institutional capacity in aviation leasing and creating a financial framework capable of supporting long-term airline growth.
Union Civil Aviation Secretary Samir Kumar Sinha said India’s airline sector remains heavily dependent on international leasing centres.
According to Sinha:
He said the government’s objective is to position India not only as a major aviation market but also as a global aviation financing jurisdiction.
“The development of GIFT City as a financial hub is a key step in achieving this transition, enabling India to retain financial value within the country while building institutional capacity in aviation leasing,” he said.
The comments reflect wider government efforts to localise aviation financing activity and reduce capital outflows associated with foreign aircraft leasing arrangements.
At the summit, Bhupendra Patel said Gujarat is playing an increasingly important role in supporting India’s aviation finance ambitions through the development of GIFT City.
According to Patel, collaboration between domestic institutions and global aviation stakeholders will help strengthen India’s broader aviation ecosystem.
He said initiatives linked to GIFT City align with the government’s longer-term economic and infrastructure development objectives.
“The collaboration between global industry stakeholders and domestic institutions will strengthen India’s aviation ecosystem,” Patel said at the event.
India’s aviation industry has expanded rapidly over the past decade, supported by rising domestic air travel demand, low-cost airline growth and airport infrastructure development.
The projected increase in aircraft fleet size indicates that financing, leasing and aviation-related financial services will become increasingly important to sustaining long-term industry expansion.
The government’s push to develop GIFT City as an aviation finance hub also reflects broader efforts to strengthen India’s role across the global aviation value chain beyond airline operations alone.
As Indian carriers continue placing large aircraft orders and expanding international operations, the demand for domestic leasing capabilities, financing expertise and institutional infrastructure is expected to grow substantially through the next decade.
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