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GIFT City will give India’s aviation sector further confidence, commitment, collaboration to develop a competitive aircraft leasing hub: Union Minister of Civil Aviation
Mar 07, 2025
Gujarat determined to become leader in aviation sector; GIFT City has established as Fintech hub of India: Chief Minister of Gujarat
GANDHINAGAR, 07 March 2025: Mr Kinjarapu Rammohan Naidu, Union Minister of Civil Aviation, Govt. of India, today said that the GIFT City is competing with global financial markets and global financial centers like Singapore and Dubai. “GIFT City will give India’s aviation sector the further required confidence, commitment and collaboration to develop a competitive aircraft leasing hub,” he added.
Addressing the ‘India Aircraft Leasing & Financing Summit’, organized by FICCI, Mr Naidu further stated that aircraft leasing is a key financial innovation that India’s growing civil aviation sector needs. “Fueled by the UDAAN scheme and doubling of India’s airports in 10 years, India has become the 3rd largest domestic aviation market in the world,” he emphasized.
The Minister also stated that by 2047, the government is planning to build 350 airports out of which 34 will function as mega airports handling 2 crore passengers annually. In the next 5 years, we are planning to build 50 more airports. “The UDAAN scheme is also extended for another 10 years which will connect 4 crore passengers in the country along with creating 120 new destinations in India. He urged to create a strong eco-system for aircraft financing and leasing in the country to become globally competitive. “GIFT City represents a transformative opportunity to bring home the values created by India’s civil aviation industry,” added Mr Naidu.
Mr Bhupendra Rajnikant Patel, Chief Minister of Gujarat said that GIFT City has today established itself as the Fintech hub of India; at such a time, this Summit will prove to be important for the development of the aviation sector and Aircraft Leasing & Financing and towards India's self-reliance in the aviation sector.
The Chief Minister further added that due to the changes in the aviation sector in the last ten years under the leadership of Hon'ble Prime Minister Mr Narendra Modi, a strong aviation ecosystem has been created in India today. “Our government is determined to make Gujarat the leader in the aviation sector. We are committed to providing the necessary production capacity, adequate infrastructure and encouragement to the industry for the development of the aviation sector,” he emphasized.
Mr V Vualnam, Secretary, Ministry of Civil Aviation, Govt. of India said that the government is committed to provide a stable regulatory framework. “The Indian carriers are looking at doubling their aircrafts they will acquire in the next 5 years from 800 to around 1500 aircrafts,” he added.
Mr Remi Maillard, Chairman of FICCI Civil Aviation Committee and President & Managing Director, Airbus India and South Asia said that Indian civil aviation sector is a key contributor to India’s economic growth what an enabling policy framework has done for India’s aviation industry, it now seeks to do for aviation financing through the GIFT-City initiative. “Developing a robust leasing and financing infrastructure can only help India cement itself as an integrated aviation destination not only in the region but also the world. GIFT City’s role in facilitating aerospace transactions has already begun, and Indian airlines and helicopter operators have begun leasing through GIFT City, a trend that will only continue and expand in the coming years,” he added.
Mr K Rajaraman, Chairperson, International Financial Services Centres Authority (IFSCA) said that the Indian civil aviation market is growing rapidly with a projected demand of 2,200 aircrafts by 2040 requiring a capital outlay of around USD 125 bn. “Recognizing the future growth trajectory of Indian civil aviation sector and economic growth potential of India, the government has worked towards building a robust aircraft leasing eco-system in India,” he added.
Mr Hasmukh Adhia, Chairperson GIFT said that GIFT City stands as a testament to India’s ambition to emerge as a leading global financial hub and is an example of sustainable urban development combined with economic prosperity.