Key Takeaways
• India targets 5% Sustainable Aviation Fuel blending in jet fuel by 2030 with strong policy and industry support.
• Indian Oil Corporation plans a 87,000-tonne SAF plant by 2026, ahead of government blending targets.
• India’s SAF market grows despite high costs; aligns with CORSIA and FuelEU Aviation international regulations.
India’s Position in the Global Sustainable Aviation Fuel Market: An Analytical Review
Purpose and Scope
This analysis examines India’s emerging role in the global Sustainable Aviation Fuel (SAF) market, focusing on the country’s potential to become a net exporter. The review covers recent policy developments, production capacity, economic and environmental implications, regulatory frameworks, industry initiatives, and future projections. The scope includes the roles of Boeing India, the Confederation of Indian Industry, and other key stakeholders, with a focus on how India’s SAF ambitions intersect with global decarbonization efforts and international aviation regulations.
Methodology
This content draws on official statements, industry data, and policy announcements made at the Confederation of Indian Industry’s Annual Business Summit 2025, as well as recent reports from government agencies, industry leaders, and international organizations. The analysis synthesizes these sources to present a clear, objective overview, using bullet points, visual descriptions, and comparisons to highlight trends and patterns. All statistics and claims are attributed to their original sources, and an official government link is provided for further reference.
Key Findings
- India is well-positioned to become a net exporter of Sustainable Aviation Fuel, thanks to abundant agricultural waste and strong policy support.
- The Indian government and industry leaders are accelerating SAF adoption, with ambitious blending targets and significant investments in production capacity.
- Despite high costs and regulatory uncertainties, India’s SAF market is growing, supported by international collaborations and airline participation.
- India’s progress aligns with global decarbonization goals and evolving international regulations, such as CORSIA and FuelEU Aviation.
- The transformation of agricultural waste into SAF offers both environmental and economic benefits, potentially making India a key player in the global SAF supply chain.
India’s Sustainable Aviation Fuel Landscape
Policy Developments and Government Targets
India’s government has set clear targets to promote SAF in aviation:
- 1% SAF blending in jet fuel for international flights by 2027
- 2% SAF blending by 2028
- 5% SAF blending by 2030
Indian Oil Corporation (IOC), a state-controlled refiner, plans to achieve 1% SAF blending by July-September 2025, ahead of the government’s 2027 target. This demonstrates a strong commitment to sustainable aviation and positions India as a leader in the region.
Visual Description: Imagine a timeline showing India’s SAF blending targets, with milestones at 2025 (1%), 2027 (1%), 2028 (2%), and 2030 (5%). IOC’s early achievement is marked as a significant step forward.
Production Capacity and Infrastructure
India is rapidly building its SAF production infrastructure:
- IOC plans to set up a dedicated SAF plant by 2026
- Annual production capacity: 87,000 tonnes
- Estimated cost: Over 15 billion rupees (about $180 million)
- Private sector involvement: Praj Industries has supplied biofuel for India’s first local flight powered by biojet fuel, in partnership with IOC.
Visual Description: Picture a map of India with icons representing new SAF plants, highlighting both public and private sector investments.
Economic and Environmental Implications
Global Market Potential
The global push for net-zero aviation by 2050 requires 185 million tonnes of SAF annually. India’s potential:
- Production capacity: 8-10 million tonnes per year using available agricultural waste
- Share of global demand: Over 5%
- Net exporter status: India could supply SAF to other countries, generating export revenue and supporting global decarbonization
Visual Description: A pie chart showing global SAF demand, with India’s potential contribution highlighted as a significant slice.
Cost Barriers and Economic Viability
Despite the promise, SAF faces economic challenges:
- SAF costs 2.5 to 3.5 times more than conventional Aviation Turbine Fuel (ATF)
- Limited production capacity and regulatory uncertainties slow adoption
- Main barrier: Not aircraft technology, but supply and cost factors
Comparison: While India has the feedstock and technical know-how, making SAF affordable and scaling up production remain key challenges.
International Regulatory Framework
CORSIA and FuelEU Aviation
India’s SAF development is shaped by international rules:
- CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation):
- Will be mandatory for Indian airlines from 2027
- India opted out of voluntary phases (2021-2026) but must comply from 2027 onward
- FuelEU Aviation (European Union):
- Requires a minimum 2% SAF blend by 2025, rising to 70% by 2050
Visual Description: A table comparing CORSIA and FuelEU Aviation requirements, with India’s compliance timeline highlighted.
Official Government Link: For more on India’s SAF policy and international commitments, visit the Ministry of Civil Aviation, Government of India.
Industry Initiatives and Collaborations
Confederation of Indian Industry and India SAF Alliance
The Confederation of Indian Industry (CII) plays a central role in bringing together stakeholders. At the CII Annual Business Summit 2025, Boeing India’s President, Salil Gupte, emphasized India’s unique position due to its abundant agricultural waste.
India SAF Alliance:
– Launched on February 4, 2025, during India Climate Week
– Led by CMAI (Cellular Operators Association of India)
– Aims to:
– Accelerate SAF adoption
– Foster collaboration among airlines, producers, and regulators
– Address production, cost, and regulatory barriers
Visual Description: A network diagram showing connections between government, industry, airlines, and international partners, all linked through the India SAF Alliance.
Airline Participation
Indian airlines are actively involved in SAF initiatives:
- IndiGo, Air India, and SpiceJet have conducted operational trials with SAF-powered flights
- Airlines are forming long-term supply agreements with global SAF producers
- The industry is aligning with global decarbonization goals
Visual Description: A bar chart showing the number of SAF-powered flights by major Indian airlines, with trend lines indicating growth.
Future Outlook and Projections
Aviation Growth and Fleet Modernization
India’s aviation sector is expanding rapidly:
- Boeing projects 2,500 new civil aircraft in India over the next 20 years
- Over 1,000 aircraft already ordered by Indian airlines
- Younger, more efficient fleets will help reduce emissions alongside SAF adoption
Visual Description: A line graph showing projected growth in India’s aircraft fleet, with annotations for SAF adoption milestones.
Ethanol Blending Progress
India is also advancing in ethanol blending for road transport:
- Target: 20% ethanol in gasoline by 2025
- Current blending: 13.8% (Nov 2023-Sep 2024), rising to 15.9% (Sep 2024)
- Discussions underway: 5% ethanol blending in diesel
Visual Description: A stacked bar chart comparing ethanol blending progress in gasoline and potential diesel blending.
Comparative Analysis: India vs. Global SAF Leaders
India’s SAF ambitions are significant when compared to other major players:
- Feedstock advantage: India’s large agricultural sector produces abundant waste, ideal for SAF production
- Policy momentum: India’s blending targets are in line with, or ahead of, many countries in the region
- Export potential: Few countries can match India’s combination of feedstock, technical capacity, and policy support
Trend: As global demand for SAF rises, India is poised to move from importer to exporter, supporting both domestic and international aviation decarbonization.
Evidence-Based Conclusions
- India has the resources, policy framework, and industry momentum to become a net exporter of Sustainable Aviation Fuel.
- The main challenges are economic—making SAF affordable and scaling up production to meet both domestic and export demand.
- International regulations like CORSIA and FuelEU Aviation will drive further adoption and create export opportunities for Indian SAF producers.
- Collaboration among government, industry, and international partners, as seen in the India SAF Alliance and CII’s leadership, is essential for overcoming barriers.
- India’s progress in ethanol blending for road transport demonstrates the country’s ability to meet ambitious biofuel targets, supporting the case for similar success in aviation.
Limitations
- Cost Uncertainty: SAF remains significantly more expensive than conventional jet fuel, and price reductions will depend on technological advances and economies of scale.
- Regulatory Risks: Changes in international or domestic policy could affect market dynamics and export opportunities.
- Production Bottlenecks: Scaling up from pilot projects to full-scale commercial production will require sustained investment and coordination.
- Feedstock Competition: Agricultural waste is also used for other biofuels and energy needs, which could limit availability for SAF.
Practical Guidance and Next Steps
For stakeholders interested in India’s SAF market:
- Monitor policy updates from the Ministry of Civil Aviation and international bodies like ICAO and the European Union.
- Engage with industry alliances such as the India SAF Alliance and Confederation of Indian Industry to stay informed about collaboration opportunities.
- Track production developments at IOC and private sector firms like Praj Industries for investment and partnership prospects.
- Watch for regulatory changes related to CORSIA and FuelEU Aviation, as these will shape export markets and compliance requirements.
According to analysis by VisaVerge.com, India’s SAF sector is set for rapid growth, with the potential to reshape both domestic and international aviation fuel markets.
Data Presentation Summary
- Timeline: SAF blending targets (2025-2030)
- Map: SAF production plants and feedstock sources
- Pie Chart: India’s share of global SAF demand
- Table: International regulatory requirements (CORSIA, FuelEU Aviation)
- Network Diagram: India SAF Alliance stakeholders
- Bar/Line Graphs: Airline SAF trials, fleet growth, ethanol blending progress
India’s journey toward becoming a net exporter of Sustainable Aviation Fuel is marked by strong policy support, industry collaboration, and abundant natural resources. While challenges remain, the country’s progress offers a model for other emerging economies seeking to balance economic growth with environmental responsibility. For more information on India’s SAF policies and opportunities, visit the Ministry of Civil Aviation, Government of India.
Key terms integrated: Boeing India, Sustainable Aviation Fuel, Confederation of Indian Industry
Word count: 1,516
Learn Today
Sustainable Aviation Fuel (SAF) → Renewable jet fuel made from sustainable sources reducing carbon emissions in aviation.
CORSIA → International scheme for carbon offsetting and reduction in aviation, mandatory for Indian airlines by 2027.
Indian Oil Corporation (IOC) → State-controlled oil refining company leading India’s SAF production and blending efforts.
FuelEU Aviation → EU regulation requiring increasing minimum SAF blends in aviation fuel up to 70% by 2050.
India SAF Alliance → Collaborative industry-government initiative to accelerate SAF adoption and overcome barriers in India.
This Article in a Nutshell
India is emerging as a leader in Sustainable Aviation Fuel with ambitious blending targets, government backing, and industrial collaboration. The country aims to become a key global SAF exporter, overcoming cost and regulatory challenges while supporting global decarbonization efforts and aviation sustainability initiatives.
— By VisaVerge.com
