Mumbai: GIFT City is betting on niche financial segments such as aircraft and ship leasing to build a more competitive global financial hub, said Sanjay Kaul, managing director (MD) and group chief executive officer (CEO) of the financial services hub.
Indian airlines have historically structured most of their aircraft leasing and financing through overseas centers, leaving domestic financial centers with a smaller share of the business. GIFT City now wants to increase its share of this activity as the Indian aviation market expands and airlines build a large order book for aircraft.
“Major Indian airlines operating now have an order book of over 2,000 aircraft that are fully leased. Traditionally, all this leasing happens outside India because there was no leasing ecosystem in India,” Kaul said. Mint.
An estimated 80% of India’s commercial fleet is financed and leased through companies in Ireland, the Cayman Islands, Singapore or Tianjin. According to a September 2025 PwC report, Ireland alone controls 29% of the global aircraft leasing market.
Now that GIFT City has aircraft leasing regulations in place and a supportive ecosystem in place, GIFT City is looking to bring a larger share of this business onshore, Kaul said.
As of June, GIFT City had 237 aircraft leased from it, according to the Office of the Centers for International Financial Services’ quarterly newsletter. According to the latest data, only 17 aircraft were leased in December 2023.
The Center also facilitated the leasing of 87 engines, 85 auxiliary power units, one flight simulator and two landing gear. As of June, there were about 37 aircraft leasing organizations operating in GIFT City.
Another part of the effort is to develop a financial structure that could give banks greater comfort in lending to aircraft.
Previously, banks were hesitant to lend directly to airlines for aircraft purchases due to the risks involved in the business and the specialized nature of aircraft financing, Kaul said.
Regulatory framework introduced in 2021, now allows a special purpose vehicle (SPV) to own the aircraft and sit between the lender and the airline. Under this structure, the lender’s risk is tied to the aircraft rather than directly to the airline’s balance sheet.
The broader plan is to make GIFT City a natural base for companies looking to finance and charter aircraft and ships.
“The logical path for any company planning to charter an airplane or ship should be: Why can’t we do it as a GIFT?” – said Kaul.
Aircraft leasing is not the only niche segment where GIFT City is gaining traction. The number of vessels chartered through the center increased from three in December 2023 to 42 in June 2026, according to the IFSCA’s quarterly newsletter. There are approximately 38 ship lessors operating in the center.
Semiconductor capability
Aircraft and ship leasing is only part of the expansion strategy. Kaul also said GIFT City is in talks with semiconductor companies to see if they can set up ancillary operations in the financial hub as Gujarat develops a semiconductor manufacturing ecosystem.
Tata Electronics is partnering with Taiwanese company PSMC to build a 300 mm (12 in) state-of-the-art AI manufacturing facility in Dholera, Gujarat. Micron has opened a semiconductor assembly and testing facility in Sanand.
Crystal Matrix Ltd will also set up an integrated compound semiconductor manufacturing facility in Dholera, while Muchi Semicon Pvt. Ltd is setting up an offsite semiconductor assembly and testing facility in Surat.
“GIFT City has now developed world-class business zones that attract global opportunity hubs,” said Rajeev Nair, Partner, Rajani Associates. “This complements the Gujarat government’s commitment to establish manufacturing and packaging hubs in other parts of Gujarat. With this, GIFT City is positioning itself as a diversified business destination, going well beyond the BFSI and IT sectors.”