Gujarat International Finance Tec-City (GIFT City), home to India’s only International Financial Services Centre (IFSC), is seeking to emerge as a hub for aviation leasing. With Indian airlines expected to add around 2,200 aircraft over the next decade, GIFT City sees a significant opportunity in aircraft leasing and aviation finance.
“Right now, the aircraft is flying in one place while the financing is happening somewhere else. What we aspire to do is bring that financing activity here,” said Sanjay Kaul, Managing Director and Chief Executive Officer of GIFT City, during a media interaction on Thursday.
At present, Dublin is the global hub for aircraft leasing and aviation finance, accounting for more than 60% of the world’s leased commercial aircraft fleet. Other established centres include Dubai and Singapore.
“I wouldn’t say I want to register another 1,000 aircraft next year. The first objective is to bring the leasing business to India. Over time, we would like GIFT City to evolve into a centre where leasing and financing activities for other countries are also conducted, similar to what happens in Dublin, Dubai and Singapore,” Kaul said.
Asset Growth
As of March 2026, GIFT City had registered 35 aircraft lessors and facilitated the leasing of 373 aviation assets, including aircraft, engines and auxiliary power units. Aviation financing worth $615 million had also been routed through banking units operating in the IFSC as of December 2025.
Union Civil Aviation Minister Kinjarapu Rammohan Naidu last month said nearly 150 aircraft belonging to airlines such as IndiGo, Air India and Akasa Air are expected to be leased through GIFT City over the next two years.
Legal Clarity for Lenders
Kaul said India’s efforts to strengthen the legal framework governing aircraft repossession have improved lender confidence. While India had signed the Cape Town Convention, lenders remained cautious because of concerns around enforcement and aircraft recovery in cases of default.
“We (India) formalised the Cape Town Convention agreement into an act that was passed in January wherein you can go and actually claim the asset,” he said. He also added that the International Financial Services Centres Authority recently introduced a framework allowing special purpose vehicles between lessors and lenders, a move aimed at making leasing structures more efficient and attractive. “There was no market earlier. Today, Indian airlines have over 2,200 aircraft on order. we are reaching out there,” Kaul said.
On attracting dollar inflows, Kaul said external commercial borrowing (ECB) exposure routed through GIFT City rose 50% year-on-year to $41 billion in March 2026. “About 73% of the ECBs raised during the last financial year were routed through GIFT City. These are transactions that would otherwise have been executed through overseas financial centres such as Singapore,” he said.
Kaul also expects growing interest from overseas investors as companies seek stable and predictable financial jurisdictions amid geopolitical uncertainties.
As of March 2026, GIFT City IFSC had 1,213 registered entities, with banking assets and funds approaching $140 billion. The centre is currently adding more than 100 entities every month, he said.