The investigation into the Air India AI 171 crash that killed 260 people in Ahmedabad last year has reached its final stage and the report is expected within a month, Union Civil Aviation Minister Rammohan Naidu Kinjarapu said on Friday.
Speaking on the sidelines of an event at GIFT City, Naidu said: “The investigation is going strong. We have to understand one thing that when foreign nationals were traveling on the plane that crashed, it will be subject to scrutiny by any country. Any country or organization can raise questions.”
He added: “Hence, investigations must be conducted with seriousness, integrity and transparency.”
The minister said that the center is addressing concerns raised by the victims’ families and that the ministry’s dedicated cell is coordinating compensation related to the June 2025 accident.
On 12 June 2025, 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 plane burst into flames 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 requested, we are providing to them,” Naidu said.
Addressing the inaugural session of the India Aircraft Leasing and Finance Summit 2.0 at GIFT City on Friday, Naidu said that India’s aviation sector is transforming at a pace that is attracting the attention of the entire world, and the ecosystem that India is building is empowering not only the country but the surrounding region.
He added that India has emerged as the third largest domestic aviation market in the world, and leasing will play a crucial role in sustaining future growth.
“Today, about 85% of the aircraft in our scheduled fleet are leased. With the rapidly increasing demand for aviation in India, we want to ensure that this leasing activity occurs within India itself, especially from GIFT City,” he said.
The Minister noted that the Government of India has undertaken several reforms to strengthen the leasing ecosystem, including the ratification of the Cape Town Convention and related legislative reforms.
Highlighting the government’s long-term vision for aviation, the Minister announced that the UDAN regional connectivity scheme will be extended for another 10 years with an investment of about $29,000 crore, including development of nearly 200 helipads across the country.
He noted that the Union government’s reforms have shown results, as the GIFT International Financial Services Center (IFSC) is now home to 38 registered aircraft lessees as of December 2025.
Addressing the summit, Gujarat Chief Minister Bhupendra Patel said Gujarat is emerging as a major hub for aviation-related growth opportunities including aircraft manufacturing, pilot training, advanced mobility and aircraft leasing.
“GIFT City plays a central role in aircraft leasing. In this year’s Union Budget, the Prime Minister extended the tax exemption for GIFT IFSC aircraft leasing companies to 20 years. The majority of Indian aviation fleets are currently chartered from abroad. For Atmanirbhar Bharat, we have to ensure that this leasing happens from GIFT City.”
The Prime Minister said that more than 370 assets worth US$ 5.8 billion have already been leased through GIFT City, and highlighted the expanding infrastructure of Gujarat Airport, including the Dholera Greenfield Airport project.
India’s aviation and aerospace sector is poised for significant long-term expansion, driven by strong passenger growth and record aircraft orders, said Jürgen Westermeier, Chairman, Civil Aviation Committee of the Federation of Indian Chambers of Commerce and Industry, President and CEO, Airbus India and South Asia.
“Developing a robust leasing and financing infrastructure plays an important role in helping India emerge as a one-stop aviation destination not only for the region but also for the world,” he said.
He noted that India’s air passenger traffic is expected to grow at a CAGR of around 9% over the next decade, while aircraft financing requirements could reach USD 170-200 billion over the next 10 years.
“India’s backlog currently stands at more than 1,600 aircraft, more than double the current air fleet. It is clear that the scale of opportunity is enormous for Indian and international lessors and financiers alike,” Westermaier said in a press release.
(With inputs from PTI)
