India is positioning itself to become a major player in the sustainable aviation fuel (SAF) market, leveraging its large agricultural sector, growing aviation demand, and supportive government policies. The country has abundant feedstocks like sugarcane, rice straw, and used cooking oil, which can be converted into SAF. With domestic airlines expanding rapidly and global pressure to decarbonize aviation, India's low production costs and scale could give it a competitive edge over other regions. However, challenges remain. SAF production costs are still high compared to conventional jet fuel, and India needs to build out its refining infrastructure and supply chains. Policy support, including blending mandates and tax incentives, will be critical to attract investment. If India can solve the cost and logistics puzzle, it could become a top exporter of SAF, helping to cut aviation emissions while boosting its own energy security.
