Archive · 28 Nov 2025
India Plans 15-Year Tax Holiday for Aircraft Leasing in GIFT City
India is thinking about giving aircraft leasing companies a longer tax break, from 10 years to 15 years, in GIFT City.
This is to make GIFT City more appealing to these companies, as they make more money from leasing planes in the later years.
Right now, Ireland is the biggest player in this market, but India wants a bigger share.
There are already 33 leasing companies in GIFT City, and they've leased over 60 aircraft and engines.
Big companies like IndiGo and Air India could benefit from this change.
The goal is to make GIFT City a major financial hub, competing with places like Singapore and Dubai.
India plans to extend the tax holiday for aircraft leasing firms in GIFT City from 10 to 15 years.
The extension aims to attract more leasing businesses and compete in the $187 billion global market.
GIFT City currently has 33 aircraft lessors and has leased over 60 aircraft and engines.
Major carriers like IndiGo and Air India, as well as global companies, could benefit from the extension.
The policy change is part of India's broader effort to establish GIFT City as a major financial hub.
- Who
- Indian government, aircraft leasing firms, global financial institutions
- What
- Extension of tax holiday for aircraft leasing firms in GIFT City
- When
- Proposed in February budget, current discussions ongoing
- Where
- Gujarat International Finance Tec-City (GIFT City), India
- Why
- To attract more aircraft leasing businesses and compete in the global market
- Current Tax Holiday Duration
- 10 years
- Proposed Extension
- 5 years (total 15 years)
- Annual Growth Rate of India's Market
- 11.8%
- Number of Aircraft Lessors in GIFT City
- 33
- Number of Aircraft and Engines Leased (as of Jan. 31)
- 60+
- Major Competitors
- Ireland, China, Singapore, Malaysia
