CHENNAI: GIFT City is positioning itself as India’s emerging aircraft leasing and aviation finance hub, seeking to bring a significant share of the country’s fast-growing aviation financing business onshore as airlines place orders for thousands of new aircraft.
Sanjay Kaul, Group CEO-MD, GIFT City, said the focus is not merely on increasing registrations but on building a deep financial ecosystem spanning banks (assets crossing $111 billion), funds, capital markets, insurance and leasing. Aviation has emerged as one of the fastest-growing segments within the International Financial Services Centre (IFSC) ecosystem.
India currently has around 800-900 aircraft in operation, while airlines have placed orders for nearly 2,200 more aircraft. Yet most aircraft financing and leasing activity continues to be routed through global hubs such as Dublin, Singapore and Dubai.
“We want the financing of aircraft flying in India to happen from India itself,” he said, noting that the country’s expanding aviation market presents a once-in-a-generation opportunity for the IFSC.
The push has gathered momentum following recent regulatory changes. The enactment of the Cape Town Convention framework earlier this year strengthened lenders’ rights over aviation assets, while the International Financial Services Centres Authority (IFSCA) introduced a special purpose vehicle (SPV) framework in May 2026 that separates lenders and lessors, providing greater comfort to financiers.
The ecosystem is already showing traction. GIFT City has attracted around 35 aircraft leasing entities, while more than 200 aircraft (Air India - 50 aircraft, Indigo - 78 aircraft, Vman - 15 helicopters, Willis Lease - engine - 79) are being financed or leased through SPV structures set up in the IFSC, as per Bharath Shivappa, president and chief of markets, GIFT City.
He expects the numbers to rise significantly as Indian carriers begin taking delivery of aircraft from their massive order books.
GIFT City is also stepping up its outreach to Tamil Nadu, leveraging the state’s strong manufacturing, technology and corporate base. The focus is on attracting Global Treasury Centres (GTCs), allowing large conglomerates with international operations to manage global cash pools and treasury functions from India rather than Singapore or Dubai.
“Why can’t companies manage their global treasury operations from here?” Kaul asked, noting GIFT City offers a regulatory and tax framework comparable with leading financial centres.
It is also targeting GCCs, R&D centres and semiconductor-linked operations, areas where TN already enjoys significant strengths.
The Chennai outreach held here on Thursday with stakeholders comes at a time when GIFT City is seeing strong growth across diverse segments. It hosts over 1,500 entities across IFSC, special economic zone and domestic tariff area, supported by 27,000 professionals.