India plans first indigenous civil aircraft in two years amid jet fuel price talks

India's civil aviation ministry said it will launch a joint‑venture to produce the country's first indigenous civilian aircraft within two years and is holding discussions with airlines and oil marketing companies about high jet fuel prices linked to the West Asia crisis.

IndiGo announced a hike in fuel surcharge for both domestic and international flights after Aviation Turbine Fuel prices rose more than 14 % month‑on‑month, a volatility the airline attributes to the Middle East geopolitical situation; ATF makes up about 40 % of a carrier's operating costs.

The ministry noted that airlines have over 1,600 aircraft on order worth roughly $100 billion, that the current fleet of domestic carriers is about 850 planes, and that India has 165 airports with plans for more than 100 new airports in the next decade, while Boeing and Airbus already source $4 billion of components and services from India, a figure expected to reach $10 billion by 2030.