India a fantastic market, but high taxation can slow down growth: IATA

India is a fantastic market that demonstrates the real value of aviation, but high fuel costs is 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 Brazil's Rio de Janeiro, Walsh said India has great opportunities, as well as some as 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. "It seems somewhat strange that it's cheaper to fly internationally than domestically because of the domestic fuel tax in India, but the government has taken measures to dampen that impact, which I think is absolutely the right thing to do," Walsh said. 

Incoming IndiGo Chief Calls India One Of Aviation's Most Exciting Markets

Responding to my question on what he thinks of Indian aviation as he prepares to take charge of India's largest airline, Willie Walsh says...

"For India to fulfil the economic ambition that the country… pic.twitter.com/Sh8QfuR1z3

— Madeeha Mujawar (@madeehamedia) June 8, 2026

On March 31, IndiGo announced the appointment of Walsh as its next CEO. In the wake of the surging fuel costs due to the West Asia crisis, some states in India have reduced the value added tax on jet fuel, which accounts for over 40 per cent of a carrier's operational expenses.