The air cargo sector in India is poised for significant growth, with the government emphasising the need for process enhancements and expedited turnaround times to fully harness its potential. A Senior Economic Advisor at the Ministry of Civil Aviation highlighted these priorities at a recent conference organised by the Air Cargo Forum India (ACFI) in New Delhi.
The advisor underscored the sector’s promising future, noting the anticipated increase in the number of freighters operating in the country. Currently, Indian carriers operate approximately 18 freighters, but this number is expected to rise as the sector expands. The focus will be on improving the ease of doing business and reducing turnaround times to boost efficiency and competitiveness. Despite the recovery in passenger traffic post-pandemic, the air cargo sector has yet to return to its pre-Covid levels. In the fiscal year 2023-24, India handled just over 3.36 million tonnes of air cargo. This lag in recovery underscores the need for targeted measures to revitalise the sector.
An official from the Department for Promotion of Industry and Internal Trade (DPIIT) highlighted ongoing efforts to enhance logistics capabilities, including workforce skilling. The official also pointed out the sub-optimal utilisation of existing air cargo facilities and stressed the importance of developing logistics hubs as part of the broader infrastructure strategy. The air cargo sector is currently a significant revenue stream for domestic carriers, accounting for nearly 10% of their income. Market research forecasts suggest that India’s air freight market could grow to USD 16.37 billion by 2027. The establishment of air transport shipment hubs at major airports is expected to be a major driver of this growth.
The logistics infrastructure development includes creating these hubs, which are crucial for optimising air cargo operations. These hubs will enhance connectivity, reduce costs, and improve the overall efficiency of the air cargo supply chain. To realise these goals, the government is actively working on policy reforms and infrastructure investments aimed at streamlining air cargo operations. This includes efforts to expedite the clearance processes, reduce bureaucratic hurdles, and adopt advanced technologies for better tracking and management of cargo.
The air cargo sector’s future looks bright, but its success hinges on the ability to implement these improvements swiftly. Faster turnaround times and more efficient logistics hubs will be critical in driving growth and enabling India to capitalise on the burgeoning global air freight market. As the industry gears up for this anticipated growth, stakeholders must collaborate closely to address existing challenges and leverage new opportunities. This collaborative approach will be essential in transforming India into a leading player in the global air cargo sector.
