India Aircraft Leasing and Financing Summit 2025

Context: The 2nd India Aircraft Leasing and Financing Summit was held in GIFT City, Gandhinagar, Gujarat, and was organized by the Union Ministry of Civil Aviation in collaboration with FICCI and IFSCA.

Key Highlights of the India Aircraft Leasing and Financing Summit 2025

First Indian Bank-Executed Aircraft Financing Deal

• Axis Bank became the first Indian bank to execute an aircraft financing transaction at GIFT City IFSC.

GIFT City’s Role in Aviation Finance

• GIFT City is emerging as India’s first aircraft leasing hub.
• Traditionally, India relied on multinational banks for aircraft financing.
• GIFT City is emerging as an alternative to global leasing hubs like Dublin and Singapore.

Key Benefits of GIFT City for Aviation Finance

• Reduces dependence on foreign leasing hubs.
• Brings economic benefits from India’s aviation sector back to India.

Growth of India’s Aviation Sector

• India is now the 3rd largest domestic aviation market in the world.

Key drivers of growth

• UDAN scheme: Extended for 10 more years, aiming to connect 4 crore passengers and develop 120 new destinations.
• Airport expansion: Currently: 149 operational airports.
  • By 2029-30: Additional 50 new airports
  • By 2047: Total 350 airports, including 34 mega airports handling 2 crore passengers annually.

Importance of Aircraft Leasing in India

• Aircraft leasing is a legal agreement where an airline or other operator rents an aircraft from a leasing company for a set period of time.
• It’s a popular way for airlines to acquire aircraft without having to purchase them outright.
• Current status of India’s airline fleet: 800 aircraft in operation.
  • Target: 1,500 aircraft in the next 5 years.

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