IndiGo will lease 150 aircraft through GIFT City in next 2 years says aviation minister

Gandhinagar, Gujarat: India's aviation major, IndiGo (InterGlobe Aviation) will lease 150 aircraft through GIFT City in next two years, said Union Civil Aviation Minister Ram Mohan Naidu on Friday.

According to the data available in public domain, IndiGo enjoy dominance with market share of about 63.6% to 64.2% as of late 2025/early 2026.

The Union Minister further stated that India’s commercial aircraft fleet is expected to reach 1,100 aircraft by 2027 and further expand to over 2,250 aircraft by 2035.

Speaking at the 2nd edition of the India Aircraft Leasing and Financing Summit 2.0 (IALFS 2.0), Union Minister stated that under the leadership of Prime Minister Narendra Modi, India is positioning itself not only as one of the world’s fastest-growing aviation markets, but also as an emerging global aviation financing and leasing jurisdiction.

He projected significant expansion of India’s commercial fleet across aircraft categories over the coming years, underscoring the urgent need for a strong domestic financing and leasing ecosystem to support this growth.

"India’s commercial aircraft fleet is expected to reach 1,100 aircraft by 2027 and further expand to over 2,250 aircraft by 2035. Indian carriers currently have outstanding deliveries of 1,640 aircraft. That translates into a USD 50 billion opportunity for India’s leasing ecosystem over the coming decade,” he added quoted by Ministry of Civil Aviation.

Naidu also highlighted the major commitments fulfilled following the first India Aircraft Leasing & Financing Summit. He referred to the enactment of the Protection of Interests in Aircraft Objects (PIAO) Act, 2025, describing it as a landmark reform aligning India’s legal framework with the Cape Town Convention. He stated, “For years, lessors faced prolonged delays in exercising their IDERA rights, increasing costs for Indian airlines and ultimately impacting passengers through higher airfares. That gap has now been addressed”.

The Minister further announced that another key assurance made at the conclusion of the first summit, the constitution of a High-Level Stakeholder Committee for leasing has also been fulfilled.

Naidu highlighted the Government’s continued support towards ensuring the operational stability and long-term growth of Indian airlines. He noted that the Government has capped ATF price increases at 25 percent, reduced landing and parking charges by 25 per cent across airports, and extended credit support measures to airlines.

Referring to a recent Cabinet decision, he shared that the Union Government has approved a Credit Line Guarantee Scheme with an outlay of Rs 5,000 crore aimed at easing liquidity pressures faced by airlines which no other government of the world has done.

K. Rajaraman, Chairperson, IFSCA, set the tone for the summit by noting that GIFT IFSC currently hosts aircraft lessors and aviation financing structures covering aircraft, engines, helicopters, and other aviation assets. He pointed to key recent reforms — including the extension of the tax holiday framework, operationalisation of the single-window IT system, and introduction of SPV and trust structures — as foundations for globally accepted financing models. The next phase, he said, would focus on deepening the ecosystem through greater regulatory flexibility and broader institutional participation across the aviation finance value chain.

Samir Kumar Sinha, Secretary, Ministry of Civil Aviation, Government of India, underscored the Government's commitment to building a stable, investor-friendly ecosystem, observing that India's aviation growth story is expanding beyond passenger traffic into ownership, financing, and financial innovation. He confirmed that efforts are underway to channel long-term domestic capital from financial institutions, insurance entities, pension funds, and infrastructure financing institutions into the aviation sector.

Providing an industry perspective, Jürgen Westermeier, Chairman, FICCI Civil Aviation Committee and President & MD, Airbus India and South Asia, observed that India's aviation and aerospace sector continues to advance on the pillars of safety, affordability, competitiveness, and sustainability. Citing the large order backlog of Indian carriers and the scale of financing required for aircraft acquisitions, he concluded that the opportunity ahead offers significant scope for both domestic and international financiers and lessors.