Gujarat's GIFT City Opens $5 Billion Opportunity For Indian Aviation Industry: Union Minister

Civil Aviation Minister K Ramamohan Naidu on Friday (11 July) said that the International Financial Services Centre (IFSC) at GIFT City in Gandhinagar has opened up a $5-billion annual opportunity for India’s aviation sector by streamlining and reducing the cost of aircraft leasing, news agency PTI reported.

Addressing the Western Region Ministers' Conference on Aviation, Naidu highlighted the strategic role GIFT City plays in easing leasing norms.

“We are seeing the leasing cost in the country reduce up to 10 to 15 per cent (after setting up the GIFT City), which is ultimately going to benefit more aircraft and more aircraft fleet developing in the country,” he said.

With nearly 80 per cent of India’s commercial aircraft fleet currently under lease, the GIFT City initiative, established as a special economic zone, provides substantial tax incentives to both domestic lessees and international lessors operating there. 

"So, with 80 per cent of our commercial fleet currently on lease, GIFT City unlocks a $-5 billion opportunity for the entire Indian aviation industry," Naidu was quoted as saying by PTI.

Enterprises at GIFT City enjoy exemptions on taxes for leasing aircraft, and lessors registered there do not need prior approvals for aircraft imports or leases, making the process more cost-effective and hassle-free.

The conference was attended by aviation ministers and officials from Maharashtra, Gujarat, Madhya Pradesh, Goa, Daman and Diu, and Dadra and Nagar Haveli, alongside key stakeholders from the Civil Aviation Ministry, DGCA, and AAI.

Naidu further emphasised that aviation has grown beyond being a mere transportation sector.

Naidu said airports have emerged as the new-age nucleus of economic activity, pointing to the ripple effects on real estate, tourism, infrastructure, agriculture, and industrial development.

Linking the aviation sector to the broader national development agenda, Naidu described Viksit Bharat 2047 as a collective goal and aspiration for the country’s 140 crore citizens.

He emphasised that civil aviation is one of the most powerful platforms capable of accelerating India’s progress toward that vision.

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