8 May 2026·PIB

INDIA AIRCRAFT LEASING & FINANCING SUMMIT 2.0

In this note

1. At a Glance

IALFS 2.0 is the 2nd edition of an annual policy-industry summit aimed at building GIFT IFSC (Gandhinagar, Gujarat) into a global hub for aircraft leasing and aviation finance [1].
Jointly organised by the Ministry of Civil Aviation (MoCA), International Financial Services Centres Authority (IFSCA) and FICCI [1].
Examinable for prelims (institutions, dates, location) and mains (GS-III economy — financial centres, aviation, infrastructure).

Held on 8 May 2026 at GIFT City, Gandhinagar, presided over by Union Civil Aviation Minister Ram Mohan Naidu; Chief Guest: Gujarat CM Bhupendra Patel [1].
Akasa Air announced setting up Akasa Air Leasing IFSC Pvt Ltd (AALI) at GIFT City to lease ~60 aircraft over 5 years; Star Air (via Ghodawat Aviation IFSC Pvt Ltd) to lease Embraer E190 with plans for 6–8 more regional aircraft in FY 2027 [1].
IFSCA–FICCI MoU signed to promote GIFT IFSC as a global aviation finance hub [1].

2019: IFSCA Act passed; IFSCA constituted (2020) as unified regulator for IFSCs [3].
Feb 2021: IFSCA notified Framework for Aircraft Operating Lease, recognising aircraft and engines as financial products under the IFSCA Act [3].
2021: First "India Aircraft Leasing Summit" hosted to onboard global lessors [4].
2025: Inaugural IALFS held at GIFT City [1].
8 May 2026: IALFS 2.0 [1].

Organisers: MoCA + IFSCA + FICCI [1].
Venue: GIFT City, Gandhinagar, Gujarat (India's only operational IFSC) [1].
Regulator: IFSCA — unified regulator under the IFSCA Act, 2019; HQ at GIFT City [3].
Enabling notification: Aircraft lease classified as a financial product under Section 3(1)(e) of IFSCA Act via MoF notification (2020) [3].
Registered lessors at GIFT IFSC: 38 entities (Dec 2025) [2].
Assets leased: 196 aircraft + 89 engines + 85 ground support units; 370 leased assets valued at ~USD 5.8 billion [2].
Aviation financing via IFSC banking units: ~USD 615 million [2].
YoY growth (2024): ~30% in aircraft/engine leasing transactions [2].

Economic

Reduces India's dependence on Ireland (Dublin) and Cayman Islands lessors, which currently dominate >80% of Indian carriers' fleet leasing [2].
Captures lease rentals onshore; boosts forex retention, jobs in legal/finance/MRO at GIFT [1].
Akasa's 60-aircraft pipeline anchors demand for the ecosystem [1].

Legal / Regulatory

IFSCA acts as a single-window regulator replacing four domestic regulators (RBI, SEBI, IRDAI, PFRDA) within the IFSC perimeter [3].
Aircraft leasing notified as "financial product"; benefits under Cape Town Convention ratification pending full implementation [3].

Strategic / Infrastructure

Aligns with UDAN, MRO policy, and target of fleet expansion to 1,500+ aircraft by 2030 [1].
GIFT IFSC positioned vs. Singapore, Hong Kong, Dublin [2].

Administrative

Joint Centre–State push: Gujarat government provides stamp-duty/registration concessions in GIFT SEZ [1].

May 2026: IALFS 2.0; AALI (Akasa) and Ghodawat Aviation IFSC entities announced; IFSCA-FICCI MoU [1].
Dec 2025: Lessor count reaches 38; asset value crosses USD 5.8 bn [2].
2025: Inaugural IALFS held [1].
2024: ~30% YoY growth in leasing transactions at GIFT IFSC [2].

IALFS 2.0 held on 8 May 2026 at GIFT City, Gandhinagar [1].
Organised by MoCA + IFSCA + FICCI (not DGCA, not AAI) [1].
Presiding minister: Ram Mohan Naidu (Civil Aviation) [1].
IFSCA established under the IFSCA Act, 2019; HQ at GIFT City [3].
Aircraft leasing notified as a financial product under IFSCA Act [3].
38 registered lessors in GIFT IFSC as of Dec 2025 [2].
370 leased assets worth USD 5.8 billion at GIFT IFSC [2].
Akasa Air Leasing IFSC Pvt Ltd (AALI) — leasing arm announced at IALFS 2.0 [1].
Star Air to lease Embraer E190 via Ghodawat Aviation IFSC Pvt Ltd [1].
IFSCA's first Aircraft Operating Lease Framework issued in February 2021 [3].
Chief Guest at IALFS 2.0: Gujarat CM Bhupendra Patel [1].
GIFT IFSC is India's only operational International Financial Services Centre [3].

GS-III — Indian Economy: Mobilization of resources, Infrastructure, Investment Models.
GS-II — Statutory bodies (IFSCA).
Probable stems: 1. "GIFT IFSC has the potential to break the Dublin–Cayman duopoly in aircraft leasing. Examine the regulatory and fiscal enablers and the gaps that remain." (GS-III) 2. "Discuss the role of the IFSCA as a unified regulator in deepening India's financial markets, with reference to aviation finance." (GS-II/III) 3. "Aviation finance is the next frontier of Atmanirbhar Bharat. Discuss." (GS-III)

IFSCA Act, 2019 — statutory parent body framework.
GIFT City / SEZ — only operational IFSC, fiscal incentives.
UDAN (RCS) — demand-side aviation push.
Cape Town Convention — international aircraft repossession regime; India's pending ratification of the Protocol.
MRO Policy 2021 — GST cut on MRO, aviation ecosystem.
DGCA & AAI — regulatory architecture distinction.
Ship Leasing in IFSC — parallel maritime initiative.
Bilateral Aircraft Lease Agreements (BALPA) with Ireland/UAE.

IFSCA ≠ DGCA. IFSCA regulates financial activity at IFSC; DGCA handles airworthiness/safety.
GIFT IFSC is in Gandhinagar (Gujarat), not Mumbai/BKC.
IFSCA Act is 2019 (constituted 2020), not 2015 (SEZ Act).
IALFS 2.0 organiser is MoCA + IFSCA + FICCI, not CII or ASSOCHAM.
Aircraft leasing was notified as a "financial product" in 2020, framework in Feb 2021.
Inaugural IALFS was 2025, not 2024.