Gandhinagar, May 8 (IANS) Union Minister of Civil Aviation Ram Mohan Naidu Kinjarapu said on Friday that India’s commercial airlines currently have outstanding deliveries of 1,640 aircraft, which translates into a $50 billion opportunity for the country’s leasing ecosystem over the coming decade.​

Addressing the India Aircraft Leasing and Financing Summit 2.0 at GIFT City here, the minister said India’s commercial aircraft fleet is expected to reach 1,100 aircraft by 2027 and expand to over 2,250 by 2035, reflecting the scale of opportunity in the leasing sector.​

He further stated that 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 a 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.​

Ram Mohan Naidu also highlighted the major commitments fulfilled following the first India Aircraft Leasing and Financing Summit.​

He referred to the enactment of the Protection of Interests in Aircraft Objects 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 Irrevocable Deregistration and Export Request Authorisation rights, increasing costs for Indian airlines and ultimately impacting passengers through higher airfares.”​

“That gap has now been addressed,” he added.​

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.​

He 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 Aviation Turbine Fuel price increases at 25 per cent, 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, he claimed, no other government in the world has done.​

Gujarat Chief Minister Bhupendra Patel reaffirmed the state’s commitment to strengthening GIFT City as a global financial and financial technology hub.​

He also highlighted Gujarat’s expanding aviation infrastructure, including new airport development projects, and invited global stakeholders to participate in the state’s aviation growth journey.​

International Financial Services Centres Authority Chairman K. Rajaraman said GIFT City 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, the operationalisation of the single-window Information Technology system, and the introduction of Special Purpose Vehicle and trust structures — as the 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.​

–IANS

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