Union Civil Aviation Minister Kinjarapu Ram Mohan Naidu on Friday, 8 May announced that seaplane operations will soon commence in Lakshadweep, as part of India's broader strategy to enhance regional air connectivity and diversify aviation infrastructure. The announcement was made at the India Aircraft Leasing and Financing Summit 2.0 held at GIFT City in Gandhinagar, Gujarat.

What the Minister Said

Addressing the summit, Minister Naidu stated that India's aviation expansion is no longer confined to conventional aircraft operations. "India's aviation expansion is no longer limited to traditional aircraft operations but is extending to helicopters, regional aircraft and seaplanes to improve connectivity in remote and geographically challenging regions," he said.

Lakshadweep will be among the first locations to implement seaplane services, he confirmed, strengthening access to the island territories that have historically faced connectivity challenges due to their remote geography.

Leasing Frameworks and New Policy Models

The minister also highlighted that the government is promoting leasing frameworks for smaller aircraft categories, including 40 to 100-seater planes, to support regional connectivity. New policy approaches such as fractional ownership models and treating aircraft as infrastructure assets are being actively developed to broaden investment participation in the aviation sector.

"These initiatives are designed to ensure balanced growth across regions while improving last-mile connectivity. Strengthening such connectivity models will be essential for India's long-term aviation expansion strategy," Naidu noted.

GIFT City's Rise as an Aviation Finance Hub

International Financial Services Centres Authority (IFSCA) Chairman K. Rajaraman said that GIFT City has rapidly evolved into a global aviation finance hub. He pointed out that while there were no leasing units in 2020, today more than 40 aircraft lessors are operational at the centre. Leasing transactions involving more than 200 aircraft and 84 engines have already been successfully completed, reflecting strong sectoral momentum.

Federation of Indian Chambers of Commerce and Industry (FICCI) Civil Aviation Committee Chairman and Airbus India Managing Director Jurgen Westermeier added: "India's aviation financing ecosystem is gaining global recognition and GIFT City is emerging as a key centre for investment and policy innovation in the sector."

Gujarat's Role and the Viksit Bharat Vision

Gujarat Chief Minister Bhupendra Patel said the state's infrastructure development, including GIFT City's connectivity and financial systems, is enabling new aviation opportunities. He emphasised that the integration of global expertise and domestic policy support will strengthen India's aviation future.

Patel added that initiatives such as seaplane operations and aviation financing reforms will support India's vision of becoming a developed nation by 2047, in line with the Viksit Bharat framework. This summit comes as India's domestic aviation market continues its rapid post-pandemic expansion, with the country widely projected to become the world's third-largest aviation market within this decade.