Global financial centre IFSC GIFT City which provides ease of aircraft leasing has unlocked a USD 5-billion opportunity annually for the domestic aviation industry, Civil Aviation Minister K Ramamohan Naidu said on Friday.
The Gujarat International Finance Tec-City (GIFT City) in Gandhinagar, which has been set up as a special economic zone, offers tax benefits to enterprises for setting up businesses.
Those taking aircraft on lease from international lesser at GIFT City get tax exemptions, while lessors registered in GIFT City are not required to get prior approval for importing or leasing an aircraft. This leads to a relaxed and cost-effective leasing process.
"We are seeing the leasing cost in the country reduce up to 10 to 15% (after setting up the GIFT City) which is ultimately going to benefit more aircraft and more aircraft fleet developing in the country.
"So, with 80% of our commercial fleet currently on lease, GIFT City unlocks a USD-5 billion opportunity for the entire Indian aviation industry," Naidu said at the Western Region Ministers' Conference of Aviation here.
The conference saw participation from Maharashtra, Madhya Pradesh, Gujarat, Goa, Union Territories of Daman and Diu and Dadra and Nagar Haveli besides senior officials of the aviation ministry, DGCA, AAI as well as other stakeholders.
Naidu further said that aviation is no longer just a main mode of transport, it is a driver of transformation with airports emerging as the new-age nucleus of economic activity.
Talking about the government's goal of Viksit Bharat by 2047, the minister said, "It is a target, a goal and a dream for all these 140 billion people collectively where we unify all our energies, where we synchronise all our energies into building and developing India by the year 2047." He noted that civil aviation is one of the most powerful springboards to propel the country towards that vision.
Airports have emerged as the new-age nucleus of economic activity, he said, adding whenever an airport comes up, growth follows while infrastructure improves and highways, metro lines and roads get expanded.
Moreover, hotels, real estate spaces, housing projects, industrial clusters, local tourism activity, agricultural productivity because of cargo, suddenly everything gets boosted up and that is the power civil aviation has today, he said.
