New Delhi: With the government focussing on the growth of the aviation sector and giving boost to the increase of airports, India’s air cargo sector is experiencing unprecedented growth, driven by the rapid expansion of e- commerce, increasing global trade, and the rising demand for efficient logistics solutions.
Observing the industry since long, the Air Cargo Forum India (ACFI) in a 16-page Knowledge Paper said that a transformative era is being seen where the skies are not just pathways but lifelines of commerce. The surging demand for swift and seamless logistics has highlighted the urgent need for strategic transhipment hubs, dynamic rerouting systems, and world-class transit facilities.
The paper said nation’s airports, from Delhi to Bengaluru, are evolving into critical nodes in the international supply chain, handling escalating export and import volumes with precision. This surge underscores the pressing need for strategic transhipment hubs and advanced transit facilities to ensure efficient connectivity.
However, challenges such as infrastructure limitations, regulatory bottlenecks, and inconsistent digital integration persist, hindering the sector’s full potential. By prioritising investments in modernised airport facilities, streamlined customs processes, and optimum digital platforms, India can address these constraints and elevate its air cargo capabilities. The establishment of dedicated cargo hubs, equipped with automated systems and enhanced intermodal connectivity, is essential to meet the demands of time- sensitive supply chains. Moreover, fostering collaboration between stakeholders—airlines, logistics providers, and government bodies—will strengthen India’s position in the global logistics ecosystem.
The paper notes that opportunity is immense: India has the potential to emerge as a leading air cargo hub, rivalling established players like Singapore and Dubai. This transformation requires a concerted focus on scalability, sustainability, and technological advancement. As the industry navigates these imperatives, it stands at a pivotal juncture, poised to redefine India’s role in global trade. By leveraging its strategic geographic position and growing economic influence, India’s air cargo sector can not only meet domestic demands but also serve as a linchpin in the international logistics network, driving economic growth and global competitiveness for years to come.
Rising on demand and policy winds, India’s cargo story is soaring towards a new global high.
India’s air cargo regulatory ecosystem is poised for transformation, driven by government initiatives to streamline operations and increase privatisation. The National Civil Aviation Policy and the Air Cargo Logistics Promotion Board are focusing on simplifying customs processes and reducing dwell times to enhance efficiency. Schemes like Krishi UDAN 2.0 and relaxed FDI norms encourage private investment, fostering public-private partnerships. However, challenges like complex regulations, high operational costs, and workforce shortages persist.
Major airports, including Mumbai, Delhi, and Bengaluru, are being modernised to handle increased cargo volumes while addressing congestion, with the introduction of automated storage and retrieval systems and specialised zones, particularly for high-value goods such as textiles and jewellery, the paper notes.
Private operators like IndiGo CarGo and Blue Dart Aviation are expanding freighter fleets to meet growing E-commerce and Pharmaceutical demand. Private entities are adopting AI, IoT, robotics, and blockchain to optimise cargo handling, reduce errors, and enhance tracking. While capacity exists, apron congestion, limited freighter bays, and lack of real-time traffic redistribution systems hinder true operational resilience under rerouting pressure.
It notes that India lacks dedicated integrator hubs like Singapore’s DHL South Asia or Memphis (FedEx), reducing readiness for high-volume rerouted cargo flows.
India has set an indicative SAF blending target of 1% by 2027, increasing to 2% by 2028, and 5% by 2030.
India could produce 8-10 MT of Sustainable Aviation Fuel (SAF) by 2040.
Investments worth US$ 70-85 billion (INR 6-7 lakh crore) will be required to achieve the projected production.
The “Air Cargo Forum India” (ACFI) was constituted by its founding members from all the segments of the entire air cargo trade & industry viz Airport (Delhi International Airport Ltd), Cargo Terminal Operators (Celebi Delhi Cargo Terminal Management India Private Limited and Delhi Cargo Service Center Private Limited), Freight Forwarders (Jeena & Company and Skyways Air Services Private Limited), Airlines (Indigo Airline) and Express Industry (DHL Express (India) Private Limited) to support & promote the major common interests of entire cargo logistic trade & industry.
ACFI is a non-profit nationwide air cargo trade forum that works within the progressive liberalised policies of the government for the rapid growth of Indian industry in the global market through a sustainable air cargo growth in the country.
