India set to become third-largest aviation market by 2035: Minister

Kinjarapu Ram Mohan Naidu said India is set to become the world’s third-largest aviation market by 2035 with around 2,250 aircraft. He highlighted GIFT City’s growing role in aircraft leasing and financing, aiming to reduce dependence on foreign jurisdictions

Gandhinagar: India is on track to become the world’s third-largest civil aviation market by 2035 with an estimated fleet size of around 2,250 aircraft, Union Civil Aviation Minister Kinjarapu Ram Mohan Naidu said at the ‘India Aircraft Leasing and Financing Summit 2.0’ held in Gujarat’s GIFT City.

The Minister said the aviation sector is entering a structural transformation, with India steadily shifting from being a consumer of global financial and leasing services to becoming an architect of aviation finance. “The expansion of aircraft leasing and financing capabilities within India marks a decisive step towards long-term sectoral self-reliance,” he noted.

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He stated that the Indian aviation sector offers opportunities worth around $50 billion in aircraft leasing over the next decade.

He added that the country’s rapid passenger growth and fleet expansion are driving the need for strong domestic leasing and financing structures. India is prepared to become the third-largest aviation market in the world by 2035, he said.

The Minister highlighted that GIFT City has developed into a strong ecosystem for aircraft leasing and financing, supported by regulatory and financial infrastructure designed to attract global players.
“This ecosystem is critical for reducing dependency on foreign leasing jurisdictions and building domestic capacity in aviation finance,” he said.

Union Civil Aviation Secretary, Samir Kumar Sinha, said the current structure of aircraft leasing remains heavily dependent on overseas jurisdictions.

“More than 80 per cent of Indian airlines aircraft are presently leased from countries such as Dublin, Singapore and Dubai,” he said. He noted that the government’s objective is to establish India not only as a large aviation market but also as a global financing jurisdiction capable of supporting its own fleet requirements.

“The development of GIFT City as a financial hub is a key step in achieving this transition, enabling India to retain financial value within the country while building institutional capacity in aviation leasing,” he said.

At the Summit, Chief Minister Bhupendra Patel said Gujarat is playing a leading role in advancing aviation finance through GIFT City.

“The collaboration between global industry stakeholders and domestic institutions will strengthen India’s aviation ecosystem. Under the leadership of Prime Minister Narendra Modi, initiatives like GIFT City will contribute significantly to the vision of a developed India by 2047 and reinforce Gujarat’s position in emerging global financial sectors,” he emphasised.