Air cargo infrastructure in India has entailed collaborative efforts from govt and industry. While we have seen investments in warehousing, terminal upgrades, and technology, the ecosystem has not caught up with the pace of global trade demands. Will the true potential of air cargo and logistics be unlocked soon?
Akash Tyagi
The air cargo sector has witnessed an unprecedented growth in past two years, in cargo handling and market size. According to reports, the total cargo handled through the air cargo reached 33.6 lakh metric tonnes by end of FY2024. Also, the market size of Indian air cargo is projected to touch US$ 63.5 billion mark by 2028-end, at a CAGR of 5.9 per cent. The air cargo sector aims to reach 10 MMT of annual throughput by 2030, which
can be turned into a reality with an upgrade of the industry’s infrastructure.
To support its growth, the authorities must take various measures in the next five years which include increasing cargo terminal capacity to handle higher volumes, establishment of transshipment hubs to reduce transit times, implementation of AI, IoT and automation to enhance operational efficiency and integration of multimodal connectivity to enable seamless movements.
These initiatives can bring a transformatory boom in the air cargo and logistics sector, catapulting India in the ranks of big players in air cargo and logistics globally.
The Union Civil Aviation Ministry has paved the way for development of dedicated freight corridors, cargo terminals and logistics parks, which will play a vital role in the country’s role in India’s transformation as a leading player in global air cargo & logistics sector. Implementation of revised Open Sky policy, investment in technology, customs simplification, and tax breaks, will play a significant role in solidifying the country’s position as a top player in global logistics. The ministry has also emphasised on the need for more dedicated freighters, as most of the air cargo is being carried out in the belly hold of the passenger aircraft.
The Airports Authority of India is leaving no stone unturned in modernising air cargo and logistics infrastructure. The initiatives include upgrading of as many as 150 smaller airports to enhance cargo handling capabilities through multimodal hubs, cold storage facilities, and digital integration. The objective of these measures is to reduce logistics time, decrease costs and establish India as a trusted global trade and transhipment hub.
Therefore, CARGOTALK interacted with industry stalwarts in order to discuss the present state of affairs of air cargo and logistics infrastructure in the country and what measures can be taken to enhance its quality.
Airports to be linked to road & rail networks
Arun Chandra, Vice President, Aviation Business, BIAL
Cargo terminals at airports should be expanded to handle higher volumes of freight. Establishing strategic hubs to streamline cargo movement, reduce transit times, and optimise supply chain networks. Leveraging AI, IoT, and automation to improve cargo tracking, reduce manual processes, and enhance operational accuracy. Developing temperature-controlled facilities for perishables to maintain quality throughout the logistics chain. Airports must be connected to rail and road networks to enable seamless cargo movement. This apart, PPPs should drive investment in green infrastructure.”
Need to modernise handling at major airports
Ayesha Katgara, Head, Corporate Strategy, Jeena & Company
Improvements such as streamlined customs procedures and reduced bureaucratic hurdles have enhanced operational efficiency. However, challenges persist. The existing infrastructure has obstacles such as considerable strain, cargo handling limitations, congestion at key airports and gaps in multimodal connectivity. Also, there is a need to modernise cargo handling facilities, integrate advanced technologies, and strengthen last-mile linkage. Policy measures, such as rationalising ATF prices and providing tax perks, could serve as enablers of growth. PPPs too will play a role in driving innovation.”
Investment in tech, digitisation essential
Suneet Gupta, SVP & Global Head, Cargo Community Systems, Kale Logistics Solutions
Quality infrastructure is a key metric for reasons such as TAT, efficiency, and safety. If the roads are not quality prone, moving cargo from the source to the airport cargo complex becomes a challenge. Lack of infra is proportional to lack of efficiency in the overall supply chain and lack of security leads to lack of trust among stakeholders. These impact EoDB of the nation. Govts should oversee infra capabilities and keep expanding them so that airports’ handling capacity increases. Investments in terms of AFSs, freight corridors, and emerging business areas are essential to stay ahead of competing countries.”
Urgent need to invest in logistics infrastructure
Pramod Menon, Vice President, Cargo Rainbow Aviation
The standards of infrastructure in air cargo and logistics sectors in India are undergoing transformation. The govt has launched initiatives to modernise 150 underutilised airports and airstrips, which will boost air cargo capabilities and regional linkage. There are also plans to set up cargo terminals, and cold storage facilities for perishables. Automated storage and retrieval systems, mechanised cargo handling systems, and Electronic Data Interchange (EDI) systems will be introduced to enhance efficiency. There is a need for investments in logistics infrastructure.”
Automation, robotics to ensure quicker TAT
Pradeep Panicker, CEO, GMR Hyderabad International Airport
India’s location between major East-West trade routes positions it as a prime transshipment hub for global cargo. Leveraging this advantage requires enhancing airport facilities, optimising operations, and establishing dedicated transshipment facilities to better utilise freight capacities. Efficient infrastructure is crucial; modernising roads, railways, and airports, and developing intermodal transportation hubs to boost connectivity and cost-effectiveness. Simplified customs processes, digitised documentation, and reduced bureaucratic hurdles would improve EoDB and minimise delays.”
Develop cargo hubs for for smooth cargo flow
Amit Tandon, CEO & Managing Director, Asia Shipping India
Several initiatives must be prioritised to support the infra expansion. Primary focus should be on improving utilisation of existing cargo facilities, which are often underutilised. Development of cargo hubs is essential for smoother cargo movement. Investments in upgrading infrastructure, especially in tier II and tier III cities, should be prioritised to bring smaller airports on par with major ones. This decentralisation would help reduce congestion at primary airports. Adoption of advanced technology and automation should also be encouraged to enhance efficiency.”
Rise in terminal capacities, transhipment hubs needed
Kunal Maheshwari, Chief Growth Officer, Softlink Global
Air cargo and logistics infrastructure is improving, but there’s lot of ground to cover. While we have seen investments in warehousing, terminal upgrades, and technology, the ecosystem has not caught up with the pace of global trade demands. India still relies on foreign hubs for transshipment, but what is promising is the government’s focus on logistics infrastructure. Increasing terminal capacities and setting up transshipment hubs will reduce bottlenecks and make India more competitive. Logi-Sys platforms are helping businesses manage shipments, optimise routes, and improve visibility.”
Upgrading tech vital to modernise operations
Raj Dhawan, Manager, Lambah Group
The standards of infrastructure in the air cargo and logistics sectors are currently mixed. While some airports such as Delhi and Mumbai have made advancements in cargo facilities, other airports still face challenges—outdated infrastructure, inadequate capacity, and inefficiency in handling growing tonnages. Such issues lead to congestion and delays. Technology adoption is lagging in certain areas, which limits operational efficiency. To support infra growth, the govt, terminal operators and other players must focus on key initiatives. Capacity must be increased at terminals to handle rising volumes.”
Tech upgrades can simplify processes, efficiency
Aditya Shah, Executive Director, V Trans India, & CEO, V Xpress
Air cargo and logistics have progressed under UDAN scheme. Infrastructure for swift cargo movement remains largely underdeveloped compared to Delhi, Mumbai and Bengaluru. While tier-I airports offer advanced cargo handling, smaller cities face limitations in warehousing, cold chains, and congestion, affecting seamless operations and global competitiveness. Technology upgrades can streamline processes and improve efficiency. The construction of multimodal parks will play a crucial role in enhancing the overall logistics infrastructure.”
Witnessing growth in infra, focus on global trade
Afzal Malbarwala, Founder & Managing Director, Galaxy Freight
The government is proceeding towards a promising future in the aviation sector. While the number of operational airports have doubled from 74 in 2014 to 157 in 2024, the UDAN scheme stresses the goal of increasing it to 350 to 400 by 2047. For faster customs clearance, the govt introduced Turant Customs programme. Besides SWIFT, e-Sanchit and ULIP make the process hassle-free. IGIA has set up a Transshipment Excellence Centre to reduce operational shortages. India has inked 13 RTAs and FTAs with many countries and regions. We are seeing growth in infra and focus on global trade.”
