Union Civil Aviation Minister Ram Mohan Naidu has welcomed the Delhi Government’s decision to reduce Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) to 7%, calling it a significant step toward strengthening India’s aviation sector and improving airline operational efficiency.
The reduction in ATF taxation is expected to provide substantial cost relief to airlines operating from the national capital, while also supporting increased connectivity, route expansion, and long-term sectoral growth.
Industry stakeholders believe the move could positively impact airline economics, encourage competitive pricing, and strengthen Delhi’s position as a major aviation hub within India’s rapidly growing air travel market.
The development comes at a time when India’s aviation sector is witnessing strong passenger demand, fleet expansion, and rising investments across airport infrastructure and airline operations.
Experts from the travel and aviation industry have also highlighted that lower fuel taxation could contribute toward improved operational sustainability for airlines, particularly amid fluctuating global fuel prices.
The decision is being viewed as a positive policy measure that aligns with India’s broader vision of strengthening regional and international air connectivity while supporting the continued growth of the country’s aviation ecosystem.
