India is a fantastic market that demonstrates the real value of aviation, but high fuel costs are a challenge for the local airlines, IATA chief and IndiGo's incoming CEO Willie Walsh said on Monday.
Speaking at briefings after the conclusion of the IATA Annual General Meeting (AGM) in the city, Walsh said India has great opportunities, as well as some challenges. However, taxation could slow down the growth potential, he added.
"The net position in India is very, very exciting and that is proven by the growth that we've seen in the domestic market... I think (there) would be a very significant growth in the international market in due course as well," he said.
The International Air Transport Association (IATA) is a grouping of more than 370 airlines and accounts for around 85 per cent of the global air traffic.
Talking about the challenges in the Indian market, Walsh cited high fuel costs.
"That is an additional burden when fuel (price) is denominated in dollars, and you've seen that the rupee has certainly lost value against the dollar in recent years," he said.
Responding to a question at one of the briefings from PTI about the regulatory and taxation system in India, Walsh said he thinks that the country's high taxation is going to slow down the potential growth of the market without question.
"If you have a more business-friendly environment where you want to see stronger growth, which I think India needs, then you have to look carefully at what your tax rate is," he said.
09/06/2026 PTI/Business Standard
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