Aircraft Leasing Boom Puts Spotlight on GIFT City’s Global Business Ecosystem

Overview: GIFT IFSC is gaining scale as an international financial and business centre, with aircraft leasing emerging as a prominent growth segment. By June 2026, the IFSC had recorded 1,260 final registrations and authorisations, while banking assets crossed USD 120 billion. Fund commitments exceeded USD 45 billion, alongside strong growth in capital markets, insurance, fintech and leasing. The expansion is positioning GIFT City as a wider global business ecosystem, beyond its financial-services origins.

Aircraft leasing is giving GIFT City another reason to attract global attention. As of June 2026, GIFT IFSC had 237 aircraft and 412 aviation assets, taking the combined aviation and ship-leasing portfolio to 454 assets. The numbers underline how quickly aviation finance and leasing have developed within India’s International Financial Services Centre, supported by a regulatory framework specifically designed to facilitate such international transactions.

But the aircraft numbers are only one part of a much bigger GIFT City story. Data released by the International Financial Services Centres Authority (IFSCA) shows an IFSC with 1,260 final registrations and authorisations, more than US$ 120 billion in banking assets and over USD 45 billion in cumulative fund commitments as of June 2026.

IFSC exchanges recorded average monthly turnover of more than US$ 105 billion in Q1 FY 2026-27. Alongside banking and funds, the ecosystem now spans capital markets, insurance, fintech, aircraft and ship leasing, technology and ancillary services. 

For Indian businesses, multinational groups and global investors, the focus is increasingly shifting from whether GIFT City can support international business to what opportunities it can offer, how businesses can enter the ecosystem and what regulatory and compliance framework follows.

GIFT City’s Business Growth: Key Metrics (As of June 2026)

• 1,260 Final IFSCA Registrations / Authorisations
• US$ 120 Billion+ Total Banking Asset Base
• US$ 45 Billion+ Cumulative Fund Commitments
• US$ 105 Billion+ Avg. Monthly Exchange Turnover (Q1 FY 2026–27)
• US$ 2.203 Billion+ Debt Listed on IFSC Exchanges (Q1 FY 2026–27)
• US$ 546 Million+ Insurance Premium Transacted (Q1 FY 2026–27)
• 412 Total Aviation Assets (Including 237 Aircraft, 87 Engines, 85 APUs)
• 454 Total Combined Aviation and Ship-Leasing Assets
• 127 Registered TechFin and Ancillary Service Providers
• USD 6.54 Billion+ Outstanding Credit via Corporate Treasury Centres

Regulatory momentum remains equally robust. Recent IFSCA notifications introduced updated frameworks governing market abuse, capital market intermediaries, and dual-listing parameters—making GIFT IFSC increasingly vital for cross-border financial activity.

Why Aircraft Leasing Matters

Aircraft leasing demonstrates how GIFT IFSC aggregates complex cross-border financial transactions. Leasing operations do not exist in isolation; they integrate asset ownership, debt financing, specialized insurance, complex legal structuring, and cross-border capital flows.

By creating a dedicated Aircraft Leasing Framework, IFSCA has successfully built a model that extends seamlessly to other asset classes, including ship leasing.

GIFT City vs. GIFT IFSC: Key Differences

• GIFT City: The overall master-planned business district situated in Gandhinagar, Gujarat.
• GIFT IFSC: The designated International Financial Services Centre located within GIFT City, created specifically to facilitate approved offshore financial services and related cross-border activities.
• Regulator: GIFT IFSC is governed exclusively by the International Financial Services Centres Authority (IFSCA)—India’s single unified regulatory body for IFSC entities.

It is important to understand that a physical address within GIFT City does not automatically grant IFSC-regulated status. Regulatory jurisdiction depends entirely on the entity’s proposed activities and applicable IFSCA frameworks.

Permitted Business Activities

The GIFT IFSC framework supports a broad spectrum of enterprise categories:

Business Setup & Eligibility Framework

Eligibility criteria in GIFT IFSC are activity-specific rather than universal. Regulators evaluate ownership structures, management credentials, net-worth metrics, and business viability.

The Step-by-Step Setup Journey:

1. Activity Mapping: Define the proposed scope to identify the relevant IFSCA regulatory framework.
2. Structural Design: Choose the ideal legal entity (Branch, Wholly Owned Subsidiary, JV, Company, or LLP).
3. Documentation: Draft comprehensive business plans, operational policies, capital structures, and governance schemes.
4. Application Submission: Submit formal applications via IFSCA’s Single Window IT System (SWIT) and Common Application Form.
5. Regulatory Review: Address specific queries and clarify operational parameters with IFSCA officers.
6. Authorization & Launch: Secure licensing (statutory turnaround target is typically within 45 days) and commence compliant operations.

Major Tax Incentives 

Tax advantages remain a major driver for businesses entering GIFT IFSC.

Under Section 147 of the Income-tax Act, 2025, eligible IFSC units can claim a 100% tax deduction on qualifying income for any 10 consecutive years out of a 15-year block (or up to 20 consecutive years out of a 25-year block for specific specialised units), subject to prescribed conditions.

However, this incentive applies strictly to qualifying businesses income rather than acting as an unqualified, blanket “tax holiday”. Businesses must evaluate tax positions alongside entity structures and regulatory obligations.

Post-Registration Compliance Obligations

Obtaining authorization is simply the first milestone. To maintain valid licensing, GIFT IFSC entities must adhere to ongoing operational rules:

• IFSCA Periodic Reporting: Regulatory submissions, capital adequacy checks, and transactional filings.
• Corporate Governance: Statutory record maintenance, local board requirements, and statutory audits.
• Tax & Financial Compliance: Annual income-tax filings, transfer pricing documentation, and audited financial statements.
• AML/KYC Protocols: Strict adherence to anti-money laundering regulations and customer due diligence.
• Evolving Rules Tracking: Ongoing monitoring of new IFSCA circulars, such as recent guidelines on market abuse mechanisms and dual-listing structures.

SetIndiaBiz has recently covered developments such as the new GIFT IFSC market-abuse framework and GIFT City’s dual-listing framework.

Setindiabiz Support

Setting up in GIFT IFSC demands far more than basic company registration. It requires aligning regulatory approvals, corporate governance, tax planning, and ongoing operational compliance. Setindiabiz provides end-to-end strategic advisory and execution services to establish and maintain your GIFT IFSC operations.

Our expert panel handles:

• Strategic Entity Structuring: Aligning your corporate structure with IFSCA mandates and tax efficiency.
• Turnkey Setup & Incorporation: Managing company formation, office setup, and local statutory requirements.
• IFSCA Licensing Support: Drafting tailored business plans, managing SWIT applications, and handling regulatory queries.
• Comprehensive Compliance Management: End-to-end management of recurring filings, corporate secretarial work, audit support, and tax filings.
• Regulatory Intelligence: Keeping your operations fully aligned with evolving IFSCA circulars and legal updates.

The aircraft leasing surge offers a clear window into GIFT City’s transformation into a mature, multi-asset global hub. However, aviation is just one proof point of a much broader story.

With over 1,260 authorisations, USD 120+ billion in banking assets, and an expanding suite of fund, insurance, and technology frameworks, GIFT IFSC offers unparalleled strategic growth. Success lies in choosing the right entity structure from day one—and keeping regulatory compliance seamless as the market evolves.