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India Sustainable Aviation Fuel Market Skyrocketing with 62.50% CAGR by 2035

12-08-2025 12:04 PM CET | Energy & Environment

Press release from: MRFR

India Sustainable Aviation Fuel Market

India Sustainable Aviation Fuel Market

MRFR reports that the India Sustainable Aviation Fuel Market was valued at USD 0.039 billion in 2024. It is projected to grow from USD 0.0634 billion in 2025 to USD 8.138 billion by 2035, achieving an impressive CAGR of 62.5% during the forecast period.

India's aviation sector is one of the fastest-growing markets in the world, driven by rising passenger traffic, expanding airline networks, and increasing domestic and international connectivity. However, with this growth comes a significant environmental impact, as conventional jet fuels contribute substantially to greenhouse gas emissions. To address these challenges, India is increasingly turning to Sustainable Aviation Fuel (SAF), an eco-friendly alternative derived from renewable feedstocks such as waste oils, agricultural residues, and non-food crops.

Sustainable Aviation Fuel offers similar energy density and performance to conventional jet fuel but with significantly lower carbon emissions. The adoption of SAF is central to India's commitment to achieving net-zero carbon emissions in the aviation sector by 2050, aligning with global climate targets. Airlines, fuel manufacturers, and government bodies are collaborating to scale up SAF production, enhance distribution networks, and implement favorable regulatory frameworks.

The India Sustainable Aviation Fuel Market is poised for substantial growth, driven by government incentives, international partnerships, technological advancements, and increasing environmental awareness. In this blog, we explore the market drivers, examine key technology advancements, and provide a regional analysis highlighting trends and opportunities across India.

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Market Drivers

Government Initiatives and Policy Support
The Government of India is playing a pivotal role in promoting SAF adoption. Programs such as the National Bio-Energy Mission and policies incentivizing biofuel production aim to reduce dependence on conventional fossil fuels and lower carbon emissions. Additionally, the Directorate General of Civil Aviation (DGCA) has issued guidelines to support SAF blending and usage in domestic flights, fostering a regulatory environment conducive to market growth.

Growing Environmental Awareness in Aviation
Increasing global attention on carbon emissions and climate change has pressured airlines to adopt cleaner fuel alternatives. India's airline operators are actively exploring SAF to improve sustainability ratings, meet international carbon-neutral goals, and enhance environmental responsibility. Adoption of SAF reduces lifecycle carbon emissions by up to 80%, making it an attractive solution for environmentally-conscious airlines.

Expanding Domestic Aviation Market
India's aviation industry is witnessing rapid growth, with passenger traffic expected to double in the next decade. Rising middle-class income, expanding urbanization, and enhanced airport infrastructure are driving air travel demand. SAF adoption is critical for supporting sustainable growth in this booming sector without exacerbating environmental impacts.

Strategic International Partnerships
India is collaborating with global stakeholders to scale SAF production and technology adoption. Partnerships with leading fuel technology providers, research institutions, and international airlines help transfer expertise, develop production infrastructure, and accelerate commercial use. Such collaborations facilitate technology sharing and market development, strengthening India's SAF ecosystem.

Government Incentives and Tax Benefits
To promote SAF production, the government offers financial incentives, subsidies, and tax benefits to producers. These measures reduce operational costs, making SAF more economically competitive with conventional jet fuels. Incentives also encourage investment in research, feedstock development, and industrial-scale production facilities.

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Technology Advancement

Advanced Feedstock Utilization
Technological advancements in feedstock processing have expanded SAF production options. Non-food biomass, used cooking oil, algae, and agricultural residues are being converted into jet fuel using processes such as hydroprocessed esters and fatty acids (HEFA), Fischer-Tropsch synthesis, and alcohol-to-jet (ATJ) conversion. These innovations enable sustainable fuel production without competing with food resources.

Scalable Conversion Technologies
Modern catalytic processes and biochemical pathways are enhancing conversion efficiency and reducing production costs. For example, HEFA technology allows large-scale production of renewable jet fuel while maintaining compatibility with existing jet engines. Continuous process improvements are making SAF commercially viable and scalable to meet India's growing aviation demand.

Blending and Compatibility Innovations
SAF is typically blended with conventional jet fuel at ratios approved by ASTM D7566 standards. Innovations in blending technology ensure seamless integration into existing refueling infrastructure, maintaining fuel quality, engine performance, and safety. Ongoing research focuses on increasing blend percentages without compromising performance, which could significantly reduce carbon emissions across the aviation fleet.

Energy Efficiency and Lifecycle Optimization
Lifecycle analysis and energy optimization techniques help reduce carbon intensity in SAF production. Improvements in feedstock collection, logistics, and process energy efficiency contribute to overall sustainability. Integrating renewable electricity in production processes further lowers greenhouse gas emissions, enhancing the environmental benefits of SAF.

Research on Next-Generation SAF
Next-generation SAF technologies, including power-to-liquid (PtL) fuels using captured CO2 and green hydrogen, are under research. These fuels offer near-zero carbon emissions and have potential for long-term sustainability in aviation. India's research institutions are actively exploring these innovations to complement conventional SAF production methods.

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Regional Analysis

Northern India

Northern India, including Delhi and surrounding regions, is emerging as a hub for SAF adoption due to high air traffic volume and well-developed airport infrastructure. Delhi International Airport, as a major international gateway, is driving pilot SAF programs, testing blends in domestic and international flights.

Western India

Western India, encompassing Mumbai, Pune, and Gujarat, benefits from industrial feedstock availability, such as used cooking oils and agricultural residues. Mumbai, being a key aviation hub, sees early SAF adoption in commercial airlines, supported by regional biofuel production facilities. Gujarat's industrial zones also contribute feedstock for SAF production.

Southern India

Southern India, particularly Bengaluru, Hyderabad, and Chennai, hosts significant aviation operations and technological research centers. Collaborative research on next-generation SAF and blending technologies is concentrated in this region, making it a strategic area for technology development and pilot projects.

Eastern India

Eastern India, including Kolkata and surrounding states, offers opportunities for SAF feedstock collection from agricultural residues. Infrastructure development in eastern airports and regional collaborations can accelerate SAF deployment, particularly for regional flights and domestic carriers.

Key Aviation Corridors

Major aviation corridors connecting northern, western, and southern India play a critical role in SAF adoption. Airlines operating on high-traffic routes prioritize SAF integration to reduce emissions and enhance sustainability credentials. Coordination along these corridors ensures supply chain efficiency, fuel availability, and seamless distribution.

India's Sustainable Aviation Fuel Market is poised for strong growth, driven by government initiatives, technological innovations, and increasing environmental awareness in the aviation sector. With continued investment and collaboration across industry, research, and regulatory stakeholders, SAF is set to play a pivotal role in India's transition toward greener, more sustainable air travel.

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About Market Research Future:
Market Research Future® (Part of WantStats Research and Media Pvt. Ltd.) has specialized research analysts in the areas of Aerospace & Defense, Automotive, C&M, Energy & Power, F&B, Healthcare & Pharmaceutical, ICT, Industrial Equipment, Packaging Construction & Mining and Semiconductor. Market Research Future (MRFR) is a global market research company that takes pride in its services, offering a complete and accurate analysis with regard to diverse markets and consumers worldwide. MRFR's approach combines the proprietary information with various data sources to give an extensive understanding to the client about the latest key developments, expected events and about what action to take based on these aspects.

Contact
Market Research Future (Part of Wantstats Research and Media Private Limited)
99 Hudson Street, 5Th Floor
New York, NY 10013
United States of America
+1 628 258 0071 (US)
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Email: sales@marketresearchfuture

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