India May Extend GIFT City Tax Break To Boost Aircraft Leasing

02 Dec 2025 CW Team

Leasing firms at GIFT City presently enjoy a 10-year profit tax waiver. Extending this by five years would make the hub more attractive to global lessors, who typically earn the bulk of their profits in the later stages of an aircraft’s lifecycle, when depreciation costs are minimal. Profit margins are typically around 1 per cent in the early years but can rise to as high as 40 per cent later, the people said.

As of 31 January, 33 aircraft lessors were registered in GIFT City, with more than 60 aircraft and engines leased through them, according to a KPMG report. The proposed reform is expected to be included in India’s Budget announcements in February and is designed to strengthen the country’s presence in the USD 187 billion global aircraft leasing market. Ireland currently manages roughly half of the world’s leased aircraft, while China, Singapore and Malaysia are also competing aggressively.

India’s domestic aircraft leasing market remains relatively small at about USD 4.7 billion in 2023, but is expanding at 11.8 per cent annually, reported Cognitive Market Research.

Neither India’s aviation ministry nor the Press Information Bureau responded to requests for comment on the proposed tax extension. The initiative follows recent progress in attracting major global financial institutions — including Mitsubishi UFJ Financial Group and HSBC Holdings — to GIFT City through targeted tax incentives.

The extension would benefit leasing arms of major Indian airlines, including InterGlobe Aviation Financial Services IFSC Pvt. (linked to IndiGo) and AI Fleet Services IFSC Ltd. (Air India). Akasa Air has also applied for clearance to establish a leasing unit in the low-tax zone.

Several global players stand to gain as well. Subsidiaries of firms such as Rolls-Royce’s RRPF Engine Leasing (India) IFSC Pvt., CRJ Aviation Leasing (IFSC) Pvt., and Willis Lease Finance India IFSC Pvt. are already registered at GIFT City.

India is considering extending the tax holiday for aircraft leasing companies operating in Gujarat International Finance Tec-City (GIFT City) from 10 years to 15 years, according to people familiar with the matter. The move aims to help India capture a larger share of the global aircraft leasing market, which is currently dominated by Ireland. Leasing firms at GIFT City presently enjoy a 10-year profit tax waiver. Extending this by five years would make the hub more attractive to global lessors, who typically earn the bulk of their profits in the later stages of an aircraft’s lifecycle, when depreciation costs are minimal. Profit margins are typically around 1 per cent in the early years but can rise to as high as 40 per cent later, the people said. As of 31 January, 33 aircraft lessors were registered in GIFT City, with more than 60 aircraft and engines leased through them, according to a KPMG report. The proposed reform is expected to be included in India’s Budget announcements in February and is designed to strengthen the country’s presence in the USD 187 billion global aircraft leasing market. Ireland currently manages roughly half of the world’s leased aircraft, while China, Singapore and Malaysia are also competing aggressively. India’s domestic aircraft leasing market remains relatively small at about USD 4.7 billion in 2023, but is expanding at 11.8 per cent annually, reported Cognitive Market Research. Neither India’s aviation ministry nor the Press Information Bureau responded to requests for comment on the proposed tax extension. The initiative follows recent progress in attracting major global financial institutions — including Mitsubishi UFJ Financial Group and HSBC Holdings — to GIFT City through targeted tax incentives. The extension would benefit leasing arms of major Indian airlines, including InterGlobe Aviation Financial Services IFSC Pvt. (linked to IndiGo) and AI Fleet Services IFSC Ltd. (Air India). Akasa Air has also applied for clearance to establish a leasing unit in the low-tax zone. Several global players stand to gain as well. Subsidiaries of firms such as Rolls-Royce’s RRPF Engine Leasing (India) IFSC Pvt., CRJ Aviation Leasing (IFSC) Pvt., and Willis Lease Finance India IFSC Pvt. are already registered at GIFT City.

Infrastructure Urban

04 May 2026

Jyoti Structures FY26 profit rises 56.5%

Jyoti Structures (JSL) recently reported strong financial results for the quarter and year ended 31 March 2026, driven by disciplined execution, cost management and steady progress across its order book.For Q4 FY2025-26, total income rose 44.2 per cent to Rs 2.41 billion from Rs 1.67 billion in Q4 FY2024-25. EBITDA increased 58.6 per cent to Rs 237 million, while EBITDA margin improved by 89 basis points to 9.84 per cent. Profit before tax grew 53.3 per cent to Rs 188.5 million, and net profit rose 51.9 per cent to Rs 181.4 million.For FY2025-26, total income grew 53.1 per cent to Rs 7.72 bill..

Infrastructure Energy

04 May 2026

Cat BEPU to Power Doppstadt Separator at IFAT 2026

Caterpillar’s Cat Battery Electric Power Unit (BEPU) has been selected by Doppstadt to power its SWS 6 Spiral Shaft Separator, which will be showcased for the first time at IFAT 2026 in Munich, Germany, from 4–7 May.The compact plug-and-play BEPU is designed to replace a diesel engine within the same space, using the same mounting locations and relative machine position. It integrates the battery, motor, inverter, onboard charging, cooling and controls, enabling OEMs to electrify existing chassis platforms without extensive redesign.Caterpillar and Cat dealer Zeppelin Power Systems have be..

Infrastructure Urban

04 May 2026

VECV sales rise 6.9% in April 2026

VE Commercial Vehicles, a joint venture between Volvo Group and Eicher Motors, recorded sales of 7,318 units in April 2026, compared to 6,846 units in April 2025, registering 6.9 per cent growth. The total included 7,159 units under the Eicher brand and 159 units under the Volvo brand.Eicher branded trucks and buses reported sales of 7,159 units during the month, up 6.6 per cent from 6,717 units in April 2025. In the domestic commercial vehicle market, Eicher sales rose 8.6 per cent to 6,797 units from 6,257 units a year earlier.Exports declined 21.3 per cent, with VECV recording 362 units in ..