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India Seeks to Complement, Not Compete with Global Aircraft Leasing Hubs: Naidu

India Seeks to Complement, Not Compete with Global Aircraft Leasing Hubs: Naidu
Union Civil Aviation Minister Rammohan Naidu articulated India’s strategic vision to complement existing global aircraft leasing hubs rather than compete directly with them. Addressing the inaugural session of the India Aircraft Leasing and Financing Summit 2.0 at GIFT City, Naidu underscored the country’s dedication to cultivating a robust aviation ecosystem that serves both national interests and the broader regional market.
Building a Collaborative Aviation Ecosystem
Naidu highlighted the rapid transformation underway in India’s aviation sector, which has begun to attract significant global attention. He emphasized that the global aircraft leasing market, including the segment related to India, is sufficiently large to accommodate multiple private sector players worldwide. “We want to be a global player, but at the same time, we seek to complement the global industry,” he stated. The minister further noted that India’s expanding market and the aviation growth in neighboring countries position the nation as a potential regional leader. He stressed the importance of taking deliberate steps to establish the right ecosystem, which would not only benefit India but also enable the wider region.
Despite these ambitions, India faces considerable challenges in emerging as a comprehensive global leasing hub. Industry experts, including IATA Director General Willie Walsh, have pointed to the limited number of widebody aircraft in India’s fleet as a significant constraint. This limitation sustains reliance on Gulf-based hubs for long-haul routes, particularly those connecting to North America, potentially impeding India’s progress toward becoming a full-service leasing center.
Progress and Challenges at GIFT City
Naidu acknowledged the strides made by GIFT City’s International Financial Services Centre (IFSC), which had registered 38 aircraft lessors as of December 2025. However, he noted that much of the leasing activity still involves ownership and primary financing arrangements structured offshore. He emphasized the need to transform GIFT IFSC into a genuine global leasing hub—not merely a registration destination but a comprehensive service center where transactions are originated, structured, executed, and managed.
The competitive landscape is intensifying, as demonstrated by the recent acquisition of Air Lease by SMBC Aviation Capital and its partners, signaling consolidation among established players who are expanding their service offerings. In this context, India must leverage its growing market and ongoing regulatory reforms to attract increased leasing activity onshore.
Outlook for India’s Aviation Market
Looking ahead, Naidu projected that India’s commercial aircraft fleet would reach 1,100 by 2027 and is expected to triple to 2,250 by 2032, positioning India as the world’s third-largest civil aviation market. In 2026, India’s passenger traffic—both domestic and international—reached 191 million. The minister also announced the imminent launch of seaplane operations in Lakshadweep, signaling further expansion of the country’s aviation footprint.
Concluding his remarks, Naidu reaffirmed the government’s commitment to ongoing reforms and ecosystem development, aiming to establish India as a significant and collaborative force within the global aircraft leasing industry.

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