India's aviation market will more than double by 2030. The question isn't whether this creates opportunities – it's whether you're positioned to capture them.
The numbers are staggering: passenger traffic jumping from 220 million to over 400 million, fleet size expanding from 700 aircraft to 1,600+, and market value growing from $16 billion to $35+ billion. This isn't gradual growth - it's explosive expansion that will reshape global aviation.
Yet most aircraft lessors remain locked into traditional structures that can't efficiently serve this market. While they watch from the sidelines, early movers are building dominant positions through India's GIFT City.
The opportunity hiding in plain sight
Indian carriers have announced massive fleet expansion plans. IndiGo, Air India, and Akasa Air are leading the charge, but they're not buying aircraft outright. Like their global counterparts, they're leasing to maintain operational flexibility and preserve capital.
The twist? Approximately 80% of India's commercial aircraft fleet is currently leased from foreign lessors, creating a massive outflow of foreign exchange and limiting local aviation finance development.
This dependency creates your opportunity. India wants to change this dynamic, and GIFT City is their solution.
Why GIFT City changes everything
Traditional offshore structures face increasing scrutiny from Indian regulators. Complex treaty arrangements and multiple intermediaries raise compliance costs and regulatory risk. GIFT City solves this by providing a local, compliant platform that satisfies regulators whilst maintaining commercial efficiency.
The government backing is clear:
- GIFT City established as India's first International Financial Services Centre
- Regulatory oversight by the International Financial Services Centres Authority (“IFSCA”), aligned with international standards
- Significant tax incentives
- Zero withholding tax on payments to non-residents
- Simplified compliance procedures and faster approvals
More than 100 aircraft have already been leased through GIFT City structures, with over $10 billion in transactions processed. This isn't theoretical - it's happening now.
The early-mover advantage
Early movers are not waiting for the market to mature. They are establishing GIFT City operations now, while regulatory barriers remain low and local partnerships are accessible. But this advantage is narrowing as the ecosystem matures. Approvals that take weeks today may take months tomorrow, and the cost of entry rises with each new competitor.
Consider the trajectory:
- 2020: IFSCA introduces aircraft leasing regulations
- 2021: First major lessors establish GIFT City operations
- 2024: 100+ aircraft leased through GIFT City structures
- 2026: Your competitive position will be largely determined
Those building now will dominate India’s aviation financing for the next decade. Those who delay may be excluded.
The infrastructure question
India’s growth requires more than capital. Lessors need local regulatory expertise, cultural understanding of business practices, dual-jurisdiction compliance systems, and the scale to manage rapid portfolio growth.
Building these capabilities takes time. Those starting now will be prepared when growth accelerates. Those waiting will scramble to catch up.
Your strategic choice
India’s opportunity will divide lessors into two groups: participants and bystanders. The key questions are simple:
- Does India feature in your five-year growth plans?
- Can your current structure efficiently serve Indian operators?
If the answer to either is yes, establishing GIFT City capabilities is no longer optional.
The $35 billion reality
By 2030, India's aviation market will be worth over $35 billion. International routes will expand from 300+ to 600+. The supporting ecosystem - maintenance, financing, insurance, legal services - will expand proportionally.
This is not just about aircraft leasing. It is about positioning for the next phase of global aviation. Those who build Indian capabilities today will benefit for decades.
Capture your share of India's aviation boom
Complete the form to download our comprehensive guide Aircraft leasing: A strategic guide to cross-jurisdictional structuring and support.
The guide provides detailed market analysis, regulatory frameworks, and implementation strategies for entering India's aviation market through GIFT City structures.
