GIFT City in Gandhinagar has emerged as a key enabler for domestic aircraft leasing, unlocking an estimated USD 5 billion in annual opportunities for India’s aviation sector, according to Civil Aviation Minister K. Ramamohan Naidu. This Gujarat-based financial hub, operating as a special economic zone, provides significant tax breaks to businesses.
Leasing companies based in GIFT City are exempt from prior approvals for importing or leasing aircraft, while lessees benefit from waived taxes, creating a smoother, more competitive leasing framework. Since these reforms took effect, leasing costs have dropped by as much as 10–15%. Given that roughly 80% of India’s commercial plane fleet is leased, these savings translate into substantial industry-wide benefits and increased capacity development.
Mr Naidu made these remarks during the Western Region Ministers’ Conference on Aviation, which drew representatives from states including Maharashtra, Madhya Pradesh, Gujarat and Goa, as well as officials from aviation bodies like DGCA and AAI.
He highlighted that aviation’s influence extends far beyond transportation, serving as a catalyst for economic development. Airports are becoming central hubs, stimulating infrastructure upgrades such as highways, metro lines and enhanced road networks.
The minister also tied civil aviation to the government’s long-term development vision. “Our ambition for a developed India by 2047 depends on unified efforts and aviation is a powerful springboard for that journey,” he stated.
Airport-led development creates ripple effects, attracting hotels, housing, commercial clusters and tourism. Even agricultural sectors benefit through boost in cargo transport, Mr Naidu explained. These benefits, combined with cost efficiencies from GIFT City’s leasing framework, are fueling a transformation in India’s aviation landscape and supporting the country’s broader economic growth strategy.
