The Air India Flight AI 171 crash killed 260 people in Ahmedabad last year
Speaking on the sidelines of an event at GIFT City, Naidu said, “Investigation is going on very strongly. We have to understand one thing that when foreign nationals were travelling on the plane that crashed, it will be up for scrutiny by any country. Any country or organisation can raise questions.”
He added, “Hence, the investigations have to be conducted with seriousness, fairness and transparency.”
The minister said the Centre is addressing concerns raised by families of the victims and that a dedicated ministry cell is coordinating compensation related to the June 2025 crash.
On June 12, 2025, the Air India flight AI 171, operated by a Boeing 787-8 Dreamliner and bound for London Gatwick, crashed into a medical college hostel complex shortly after take-off from Sardar Vallabhbhai Patel International Airport. The aircraft caught fire on impact. Of the 242 people on board, 241 died, along with 19 people on the ground.
“The Aircraft Accident Investigation Bureau is conducting independent investigations and, whatever resources they have asked for, we have been providing,” Naidu said.
Addressing the inaugural session of India Aircraft Leasing and Financing Summit 2.0 at GIFT City on Friday, Naidu said that India’s aviation sector is transforming at a pace that is catching the attention of the entire world, and the ecosystem that India builds enables not just the country but the region surrounding it.
He said India had emerged as the world’s third-largest domestic aviation market and leasing would play a critical role in sustaining future growth.
“Today, around 85% of the aircraft in our scheduled fleet are on lease. With aviation demand in India increasing rapidly, we want to ensure that this leasing activity happens within India itself, especially from GIFT City,” he said.
The minister noted that the government of India had undertaken several reforms to strengthen the leasing ecosystem, including ratification of the Cape Town Convention and related legislative reforms.
Highlighting the government’s long-term aviation vision, the minister announced that the UDAN regional connectivity scheme would be extended for another 10 years with an investment around ₹29,000 crore, including the development of nearly 200 heliports across the country.
He pointed out that the Union government’s reforms have shown results, with the GIFT International Financial Services Centre (IFSC) now being home to 38 registered aircraft lessors as of December 2025.
Addressing the summit, Gujarat chief minister Bhupendra Patel said Gujarat was emerging as a key hub for aviation-linked growth opportunities including aircraft manufacturing, pilot training, advanced mobility and aircraft leasing.
“GIFT City is playing a central role in aircraft leasing. In this year’s Union Budget, the Prime Minister extended the tax holiday for aircraft leasing companies in GIFT IFSC to 20 years. A majority of India’s aviation fleets are currently leased from overseas. For an Atmanirbhar Bharat, we have to ensure that this leasing happens from GIFT City,” he said.
The chief minister said more than 370 assets worth USD 5.8 billion had already been leased through GIFT City and highlighted Gujarat’s expanding airport infrastructure, including the Dholera Greenfield Airport project.
Jürgen Westermeier, chairman of FICCI Civil Aviation Committee, President & MD, Airbus India and South Asia, said India’s aviation and aerospace sector was poised for significant long-term expansion, driven by strong passenger growth and record aircraft orders.
“Developing a robust indigenous leasing and financing infrastructure is playing a significant role in helping India emerge as an integrated aviation destination not only for the region but also for the world,” he said.
He noted that India’s air passenger traffic was expected to grow at a CAGR of nearly 9% over the next decade, while aircraft financing requirements could reach USD 170-200 billion over the next 10 years.
“India’s order backlog currently stands at over 1,600 aircraft, more than double the existing flying fleet. Clearly, the scale of opportunity is immense for both Indian and international lessors and financiers,” Westermeier said in a press statement.
(With inputs from PTI)
