GIFT City Aims to Expand Share in Global Aircraft Leasing Market

Gujarat International Finance Tec-City (GIFT City) is planning to significantly expand its share in the global aircraft leasing market, Group CEO and Managing Director Sanjay Kaul announced to reporters in Chennai on Thursday. The initiative aims to shift aircraft financing transactions directly to India, establishing the country as a major hub for aviation finance.

Currently, GIFT City manages a portfolio of about 40 lessors, which comprises more than 220 aircraft and engines. This expansion effort comes at a time when the global aircraft leasing market, historically dominated by Dublin, was valued at $187 billion in 2025.

Speaking on the growth of the sector, Kaul highlighted that India has emerged as one of the fastest-growing aviation markets in the world. He noted that approximately 800 to 900 aircraft are currently being operated within India. Furthermore, the country's three major airlines have close to 2,200 aircraft on order.

Kaul questioned why aircraft financing should occur overseas when the planes themselves are operated locally. He explained that GIFT City's immediate goal is to bring this financing business to India. Over time, GIFT City intends to capture leasing activities that are currently being carried out in international hubs such as Ireland, the United Arab Emirates (UAE), and Singapore.

The growth strategy has received a substantial boost from the formalisation of the international Cape Town Convention through the Protection of Interests in Aircraft Objects Act earlier this year. According to Kaul, this legislative milestone is highly beneficial as it enables lessors to successfully reclaim their assets.

In addition to the legislative support, the International Financial Services Centres Authority (IFSCA) has introduced a new regulatory framework that separates the lessor from the lender. This framework utilizes a Special Purpose Vehicle (SPV) structure to function as an intermediary.

Following a recent amendment, Trust and Company Service Providers (TCSPs) are now permitted to offer specialized services to lessors. They can do this by setting up these SPV structures specifically for aircraft leasing operations from the GIFT International Financial Services Centre (IFSC).