Indian aviation market is emerging stronger with growth in connectivity, networks and airport infrastructure, and the country also has the potential for producing sustainable aviation fuel, global airlines’ grouping IATA said on Sunday.
However, the grouping also said that there is a high cost environment in India and also high uncertainty for tax planning.
Amitabh Khosla, Country Director India, Nepal & Bhutan at the International Air Transport Association (IATA) on Sunday said the Indian aviation market is witnessing a significant improvement on the back of emergence of stronger airlines within the country, the growth of connectivity and networks.
“We are also seeing significant increase in the airport infrastructure, so it gives a good foundation, a base on which India will build further,” he said.
At a briefing in the national capital on the sidelines of the World Air Transport Summit (WATS) being organised by IATA, Khosla also said India is one of the largest producers of ethanol.
India has the potential to produce Sustainable Aviation Fuel (SAF). “We understand from our discussions with some of the oil companies in the country that we are looking at India SAF production coming about in 2026,” he said.
IATA represents about 350 airlines comprising over 80 per cent of the global air traffic.
Around 1,700 participants are expected to attend WATS and the grouping will also be holding its Annual General Meeting (AGM) in India for the first time after 42 years.
According to IATA, India’s aviation industry directly employs 3,69,700 people and generates USD 5.6 billion of GDP.
When indirect, induced and tourism impacts are included, the totals rise to 7.7 million jobs and USD 53.6 billion of GDP (1.5 per cent).