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 per cent (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 per cent 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.