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

16 Jan 2026

Rosatom Delivers Nuclear Fuel for Kudankulam Unit 3

Rosatom has recently supplied nuclear fuel for the initial loading of the VVER-1000 reactor core at Unit 3 of the Kudankulam Nuclear Power Plant, marking a key milestone in the second stage of the Russian-designed nuclear power project in southern India.The fuel was supplied by Rosatom’s Nuclear Fuel Division, managed by TVEL, and manufactured at the Novosibirsk Chemical Concentrates Plant. The delivery includes the initial reactor load along with reserve fuel assemblies and is part of a long-term contract covering the entire operational life of Units 3 and 4.Building on operational experien..

Infrastructure Transport

16 Jan 2026

CBL International Enables First LNG Bunkering at Xiaomo Port

CBL International recently completed the first-ever LNG bunkering operation at Xiaomo Port, supplying liquefied natural gas to vessels operated by BYD in support of its maritime decarbonisation strategy. The operation was facilitated through a physical supplier in collaboration with China National Offshore Oil Corporation (CNOOC), which supported the port’s inaugural LNG bunkering activity. The milestone represents a strategic expansion of CBL International's sustainable fuel offerings beyond biofuels, while also diversifying revenue streams. As global shipping intensifies efforts to cut em..

Infrastructure Urban

16 Jan 2026

Aimtron, Aurassure Partner for IoT Weather Systems

Aimtron Electronics has recently entered into an OEM manufacturing engagement with Aurassure to produce new-age, IoT-enabled weather and environmental monitoring systems in India. The collaboration supports the growing demand for real-time environmental intelligence across urban, industrial and infrastructure applications. The engagement comes as global focus on climate-risk management and data-driven planning accelerates. The global weather monitoring systems market, valued at around USD 2.1 billion in 2024, is projected to reach nearly USD 4.8 billion by 2034, driven by the rapid adoption o..