New Delhi, May 9: India’s aviation sector is rapidly expanding, presenting significant investment opportunities in aircraft leasing and financing in the coming years. Union Minister for Civil Aviation, Ram Mohan Naidu Kinjirapu, stated that Indian airlines currently have 1,640 aircraft deliveries pending, which could create a $50 billion aircraft leasing opportunity over the next decade. He made these remarks at the India Aircraft Leasing and Financing Summit 2.0 held in Gandhinagar’s GIFT City.
The minister emphasized that India has become one of the fastest-growing aviation markets globally and is swiftly positioning itself as a hub for global aviation financing and aircraft leasing.
Currently, Indian airlines have 1,640 aircraft awaiting delivery. This backlog could translate into approximately $50 billion in leasing opportunities over the next ten years. Naidu projected that India’s commercial aircraft fleet could grow to 1,100 by 2027 and exceed 2,250 by 2035.
He further noted that a robust domestic financing and leasing ecosystem is essential to support this significant expansion in the aviation sector. The government is actively working towards providing Indian airlines with world-class facilities and financial assistance.
Naidu highlighted that many commitments made during the previous India Aircraft Leasing and Financing Summit have been fulfilled by the government. This includes the implementation of the ‘Protection of Interests in Aircraft Objects Act 2025,’ which aligns India’s legal framework with the Cape Town Convention.
Previously, aircraft leasing companies faced long waits for aircraft de-registration and export authorization, leading to increased costs for airlines and ultimately higher fares for passengers. The government has now resolved this issue.
Additionally, the government has capped the increase in aviation turbine fuel (ATF) prices to 25% to ease the burden on airlines. Landing and parking fees at airports have been reduced by 25%, and credit support for airlines has been enhanced.
Recently, the Union Cabinet approved a ₹5,000 crore credit line guarantee scheme to alleviate cash flow issues for airlines. Naidu claimed that few governments worldwide have undertaken such initiatives for the aviation sector.
During the announcement, the minister also revealed that seaplane services would soon be launched in Lakshadweep. He stated that India is no longer limited to traditional airline services but is also focusing on enhancing connectivity to remote and geographically challenging areas through helicopters, small regional aircraft, and seaplanes.
The government is promoting a leasing framework for small aircraft with 40 to 100 seats to strengthen regional connectivity. Furthermore, new policy options, such as fractional ownership models and recognizing aircraft as infrastructure assets, are being explored to boost investment in the aviation sector.
My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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