As India prepares to implement its fiscal budget 2025, the air cargo industry is urging policymakers to implement targeted measures that enhance infrastructure, digitalisation, and regulatory efficiency.

Dr. Vandana Singh, an expert in supply chain and logistics policy, has underscored the necessity of air cargo as a fundamental driver of trade expansion and economic acceleration. “India has the potential to become a global air cargo leader, but this requires strategic investments in technology, infrastructure, and policy reforms to ensure seamless connectivity and efficiency,” she states.

With India currently handling approximately three and a half million metric tonnes of air cargo annually, strategic interventions could elevate this figure to 10 million metric tonnes within the next three to five years, aligning with the government’s Mission 2030 vision.

Future-ready infrastructure

Expanding and modernising India’s air cargo infrastructure is a key policy priority. While major hubs such as Delhi, Mumbai, and Bengaluru have strong cargo-handling capacities, the development of tier-2 and tier-3 airports into air cargo hubs remains an area of focus.

The government’s Gati Shakti initiative has laid the foundation for multimodal logistics integration, yet further investment is required in dedicated freight corridors, warehouse automation, and enhanced cargo terminals. Freighter aircraft capacity is another critical component.

While passenger belly cargo continues to be a major contributor, dedicated freighter services must be expanded, particularly for high-value sectors such as pharmaceuticals, perishables, and e-commerce. “Encouraging Indian carriers to expand their freighter fleet through tax benefits and financial incentives is essential to meet growing demand and reduce dependency on international carriers,” Dr. Singh highlighted.

Leveraging digitalisation and automation

Best practices highlight digitalisation as a crucial enabler of efficiency in air cargo operations. The adoption of AI-driven cargo tracking systems, blockchain for transaction transparency, and India’s move towards paperless trade must remain top priorities. The National Logistics Policy (NLP) has provided a framework for this transition, but seamless implementation will require deeper collaboration between government agencies and industry stakeholders. Customs clearance continues to be a challenge for air cargo operators, with delays increasing operational costs.

While initiatives like Faceless Assessment have streamlined some processes, further enhancements such as risk-based inspections and single-window clearance mechanisms will be necessary.

“Regulatory simplification and automation in customs will not only reduce turnaround times but also enhance competitiveness in global logistics,” Dr. Singh asserted.

Sustainability and green logistics India’s air cargo policy must align with global sustainability trends by promoting green aviation initiatives. Sustainable aviation fuel (SAF) adoption, carbon offset mechanisms, and investments in energy-efficient cargo handling infrastructure should be central to policy discussions. With increasing pressure from international trade partners on environmental compliance, India must integrate green logistics standards to maintain its global positioning.

Policy incentives for electric ground handling equipment, solar-powered warehouses, and sustainable packaging materials should also be considered. “Sustainability is no longer optional; it is an industry imperative. By embedding green aviation practices into policy frameworks, India can strengthen its global trade standing while reducing its carbon footprint,” Dr. Singh stated.

Global hub

Beyond operational efficiency, India’s air cargo policy must focus on positioning the country as a central player in global supply chains. Enhanced air connectivity, strategic trade agreements, and foreign direct investment (FDI) in air cargo infrastructure will be instrumental in driving long-term growth.

The establishment of Free Trade Zones (FTZs) and Special Economic Zones (SEZs) dedicated to air logistics would provide a significant boost, attracting multinational logistics providers and fostering innovation in cargo management. Furthermore, investments in human capital, including skills training for cargo handlers and regulatory personnel, will ensure India’s workforce is equipped to meet future industry demands.

Road to 2030

The air cargo industry is a key enabler of India’s economic ambitions, supporting trade expansion and industrial growth. As Dr. Singh emphasised, “The upcoming budget provides a decisive opportunity to reshape India’s air cargo ecosystem through strategic policy measures that prioritise efficiency, sustainability, and infrastructure development.” With targeted reforms and a proactive policy approach, India can emerge as a global leader in air cargo logistics, paving the way for sustainable economic growth and enhanced global trade integration.

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