March 12,2025:The latest report by KPMG in India, titled ‘Aviation Leasing and Financing Ecosystem at GIFT IFSC, India’ , highlights a transformative phase in India’s aviation leasing market, driven by robust economic growth and a strategic push towards becoming a global aviation hub. Key data points underscore the nation’s economic resilience and the burgeoning opportunities within the aviation and leasing sectors:

• Aviation Recovery: Post-COVID-19, air passenger traffic not only rebounded to nearly 96% of pre-pandemic levels by FY23 but exceeded these levels in FY24, with 376 million passengers recorded.
• Market Expansion: Currently ranked as the world’s third-largest domestic aviation market, India is set to witness a significant increase in its aircraft fleet – projected to reach approximately 2,100–2,200 aircraft by FY44.
• Investment Outlook: With commercial airlines expected to require an investment of USD 210–255 billion over the next two decades, the shift towards leasing is emerging as a financially prudent strategy.
• IFSC Advantage: The GIFT City IFSC, India’s first operational international financial services centre, offers competitive tax benefits, regulatory ease, and innovative financial products that are catalyzing the growth of aircraft leasing. With over 33 aircraft lessors registered and more than 60 aircrafts and similar number of engines have been leased as of January 2025, the ecosystem is rapidly evolving to support future expansion.

Sunil Badala, Partner, National Head of Tax, KPMG in India said, “The IFSC at GIFT City is a strategic initiative by the government to create a global financial hub. The IFSC offers robust regulatory framework and tax incentives for aircraft leasing and financing. Aircraft leasing ecosystem at Gift IFSC fosters an environment where innovative leasing solutions can thrive, driving sustainable economic growth.”

Commenting on the report, Girish Nair, Partner and National Head – Aviation and Global Lead Airports, KPMG in India, stated, “Our analysis strongly recommends that both global and local lessors tap into the unique opportunities at GIFT City IFSC. With a confluence of favorable tax incentives and a robust regulatory framework, this platform is not only setting new benchmarks in aircraft leasing but also paving the way for a more modern, asset-light approach that can propel the aviation sector into a sustainable future.”