What is powering – India’s new air cargo & logistics era?

What was once a quiet, behind-the-scenes engine of trade has now become a pillar of India’s economic ambitions — fuelled by e-commerce growth, rising manufacturing, and a nationwide push for supply chain resilience. Airports are modernising, freighters are gaining importance, and digital tools are reshaping speed and precision of air cargo movements. CargoTalk speaks to cargo agents who paint a clear picture that the sector is evolving faster than ever, and the opportunities ahead are as significant as the challenges.

Ritika Arora Bhola

The air cargo and logistics sector is in a defining era. For decades, cargo operations played second fiddle to aviation, functioning in the background to keep trade moving. Today, cargo has moved into the spotlight. Driven by booming e-commerce, rising manufacturing activity, focus on global supply chain resilience, digitalisation, investments in infra, and multimodal cargo ops, the sector is experiencing a change.

Conversations with stakeholders reveal a sector that is not only optimistic but also pragmatic, aware of its potential, yet clear about the work still to be done to achieve global competitiveness. The cargo agents’ insights point toward key learnings from 2025 and defining themes shaping India’s cargo future in the year ahead.

Infra improving
The most recurring observation from cargo agents is the visible improvement in multimodal cargo infrastructure over the past five years. Initiatives such as NLP and PMGS, modernised cargo terminals, DFCs, cold chain zones, MMLPs, railways and ports, and digital processing systems, have been improved. A decade ago, the agents would lose precious time waiting for documentation or clearance at customs. Now, cargo flow has become faster. “As volumes rise, it must be ensured that infrastructure does not fall behind again,” say experts. “India’s improved cargo infra — enabling faster throughput, especially driven from express cargo, perishables, pharma — demands expansion and modernisation. Freighter parking, transshipment hubs, specialised handling equipment, and advanced cold-chain facilities are the next major priorities,” experts stressed.

Digitalisation no longer optional
Digitalisation has enhanced cargo efficiency and end-to-end transparency in the past few years. Electronic air waybills, digital customs processes, e-Gates, online payment systems, and automated tracking have reduced turnaround times. But stakeholders believe digitisation is still uneven. There is a need to boost digital literacy, open more training institutions, launch workshops, and encourage gen next to enter the business of air cargo and logistics. Today, big freight forwarders, MNCs, and major airports are tech-ready, but small enterprises, which form the backbone of Indian logistics and export ecosystem, still depend largely on paper, manual processes and updates. The digital divide slows everyone down. India’s cargo revolution depends on bringing smaller players into the digital ecosystem, standardising systems across airports, fully integrating customs, airlines, freight forwarders, and ground handlers. End-to-end visibility is now a basic expectation, not a luxury.

Cargo network planning
The explosive growth of e-commerce has rewritten demand patterns for air logistics. Same day delivery, express shipments, and decentralised warehousing have triggered new routes, increased freighter utilisation, and pushed airlines to design cargo first strategies. Now impetus is on cross border e-commerce, which will be a game changer in the coming years. Express logistics and e-commerce fulfilment are central to cargo planning.Airlines, integrators, and airports must continue investing in speed, automation, and night-time operations to meet expectations.

Dedicated freighters
While passenger belly space carries most of India’s air cargo, stakeholders express the need for more freighters. If India wants to become a global manufacturing and logistics hub, freighter linkage is non-negotiable. Also, with rising volumes, experts highlight the need to bring in more freighters. With Manufacture in India and Self-reliant India initiatives spanning electronics, pharmaceuticals, engineering, and perishables, cargo schedules and point-to-point connectivity become imperative. Current freighter penetration remains lower than global averages. A stronger freighter ecosystem is essential to support the country’s export-led growth — domestic and international.

Predictability is key
Cargo agents agree that Customs processes have improved, particularly with the introduction of risk-based inspections, automated routing, and 24×7 operations at major airports. However, consistency varies between airports and cargo types. Experts said processes have become faster now, but are not always predictable. When you are moving fresh produce, every hour matters. Standardisation across airports will boost exporter confidence. Predictability is as important as speed. Consistent Customs procedures across India will enhance reliability and reduce logistics risks.

Perishables, Pharma Powerhouse
Thanks to pharmaceutical manufacturing, which is a booming fresh produce sector, and rising demand for high-value temperature-sensitive goods, India is rapidly emerging as a pharma and global cold chain leader. Cargo agents point out that pharmaeutical exporters rely heavily on India’s expanding temperature-controlled facilities. Perishables such as fruits, vegetables, seafood, and flowers need specialised handling and quick clearance. Live vaccines and biologics require ultra-cold solutions and strict compliance. India’s cold chain capabilities have grown, but there is a need for more end-to-end temperature monitoring and harmonised SOPs. If the sector continues investing in technology, training, and standardised temperature-control systems, cold chain logistics are well on their way to being the defining strength of India.

Workforce
The sector’s expansion has highlighted the need for a skilled, safety-trained, and tech-savvy workforce. There is a shortage of trained Dangerous Goods (DG) handlers, gaps in digital knowledge, inconsistent training standards across airports, and high turnover during market fluctuations. Handling DG, perishables, or high-value electronics requires precision, training should not just be available — it must be mandatory and standardised. Human capital development must keep pace with technology and infrastructure growth for India to remain globally competitive.

Regional airports
With the rise of tier II and III cities, the agents believe regional airports will become vital export hubs for textiles, handicrafts, agri products, pharma, engineering goods, and e-commerce fulfillment. Decentralising cargo handling to regional hubs will reduce congestion, improve efficiency, and unlock new export potential for smaller cities, said experts.

Sustainability
Air cargo players recognise the importance of sustainability with international airlines adopting SAF-efficient aircraft — in India it is not common because Sustainable AViation Fuel is quite expensive. But agents are striving to reduce carbon emissions. Electric GSE is gaining traction in the country. Warehouses are switching to solar and green-building standards. Paperless processes are reducing waste. Green logistics will become a competitive differentiator — not a compliance requirement — in the coming years. Driven by digitisation, infrastructure upgrades, and evolving trade patterns, the cargo and logistics ecosystem has made progress. Yet the road ahead calls for deeper integration, data-driven operations, and a coordinated push toward standardisation and predictability. As the agents across the country put it — India has the demand, the talent, and the ambition. The next leap requires collaboration and continuous investment. If India sustains this momentum, the cargo sector will keep pace with global leaders and set benchmarks for speed, resilience, and innovation in the years to come.

This year has proven to be a defining period for logistics and air cargo in India — a year when global uncertainties, regulatory shifts, and technological transformation collided to reshape business strategies and operational priorities. Industry leaders discuss one overarching lesson, that is, adaptability and resilience are no longer optional, they are critical for survival and growth.

Dipanjan Banerjee, Chief Commercial Officer, Blue Dart, reflects on the operational and strategic shifts that defined this year. “The year reaffirmed resilience and customer-centricity are the true differentiators in logistics. Our significant learning has been the importance of staying agile — be it scaling capacity during demand increasing or aligning with evolving compliance and sustainability expectations.”

He highlighted how GST 2.0 reforms spurred consumption across categories, teaching logistics players that policy tailwinds translate into business outcome if businesses are ready to absorb and serve that demand. The festive season, Banerjee noted, “saw some of the strongest sales and shipment activity in recent years, validating our focus on peak preparedness, route optimisation, and close collaboration with customers.”

For express logistics, he said the takeaway is clear: Combining regulatory readiness, operational resilience, and a sharp customer focus positions players to convert macro shifts into sustainable growth.

Amit Tandon, CEO & Managing Director, Asia Shipping, India, observed, “Rather than viewing these developments as disruptions, they were treated as catalysts for transformation. The fragmentation of global trade blocs and the rise of regionalisation prompted us to recalibrate our network design, routing strategies, and sourcing models.”

Tandon said that disruptions, such as Red Sea crisis and shifts in maritime lanes increased complexity and underscored the need for diversification and foresight. By broadening carrier and hub portfolios across Asia, the Middle East, and Latin America, and strengthening compliance and digital frameworks, the company turned volatility into strategic advantage.

“Preparedness is more valuable than prediction,” Tandon emphasised, adding data intelligence, AI-led forecasting, and scenario-based planning as competitive strengths in logistics. Sustainability and regulatory readiness, he said, were no longer peripheral concerns but integral to global competitiveness.

For Dilip Sahu, MD, EPS Worldwide Integrated
Logistics, the year underlined the importance of agility and proactive risk management. Geopolitical tensions heightened cybersecurity concerns, while evolving data privacy laws and AI governance frameworks demanded compliance and product updates. At the same time, trends, such as nearshoring and digital trade pacts created opportunities for expansion into favourable regulatory environments. “Resilience comes from flexibility in supply chains, workforce strategy, and digital capabilities,” he observed, adding that faster decision-making and diversified operations are essential for navigating volatility.

Abhishek Goyal, CEO and Executive Director, Aeroprime Group, highlighted how this year transformed aviation sector, with cargo and passenger segments adapting to shifting trade routes, evolving travel regulations, and changing geopolitical alignments. “These shifts emphasised the importance of operational agility and geographic diversification,” he explained. Cargo operations demanded smarter route planning, digital coordination, and stronger alignment with logistics partners. At the same time, passenger operations benefitted from Aeroprime’s proprietary solution, Glid — which helps airlines reduce distribution costs and expand market reach. Goyal emphasised, “Digital transformation and collaboration must evolve hand-in-hand, keeping pace with the aviation industry’s complexity.” True progress lies in combining technology, market intelligence, trust, transparency, and agility to adapt to evolving circumstances, Goyal said, signing off.

M Afzal Malbarwala, MD and Founder, Galaxy Freight, emphasised that rising fuel prices, trade tensions, and geopolitical disruptions reshaped logistics operations this year. To adapt, logistics providers had to rethink sourcing strategies, diversify suppliers, and invest in AI and predictive analytics for resilient operations. Malbarwala underscored the importance of risk assessment and adapting to changing regulations, stating modern logistics players must upgrade systems and processes to remain competitive.

Similarly, Keku Bomi Gazder, CEO and MD, Aviapro Logistic Services, pointed out the operational impacts of geopolitical events, regulatory changes, and shifting trade patterns. Supply chain disruptions, increasing transportation costs, and fuel price fluctuations demanded constant adaptation. Gazder emphasised the importance of sustainability and investment in greener technologies as well as digital transformation and data-driven insights. “Continuous learning, innovation, and strategic agility are essential to thrive in an uncertain and fast-evolving business climate,” e observed.

Shesh Kulkarni, Managing Director, Noatum Logistics, offered the lesson that ‘Diversification is key’. “Do not place all your eggs in one basket. Spread your business across continents and de-risk it. Always have a plan B,” he advised. Despite global unpredictability, he said, India maintained resilience and encouraged Indian businesses to expand their reach and develop new markets.

Echoing similar sentiments, S Hari, CEO, OneAvia Services, averred, “In this year, global changes had an impact on how we worked. Shifting trade rules, new regulations, and geopolitical tensions created delays and pushed us to adjust our plans quickly.” He emphasised the importance of clear communication, teamwork, and proactive decision-making in managing uncertainty.

Amit Maheshwari, Founder and CEO, Softlink Global, noted that geopolitical uncertainty and shifting trade corridors reshaped customer priorities. “The focus moved from low costs to high resilience. For us, it meant helping logistics firms digitally connect with new partners and routes faster than ever.” Maheshwari emphasised that resilience comes from adaptability, not scale, and that technology is now the backbone of logistics operations rather than a supporting tool.

Anish Kumar Jha, MD, India, Sri Lanka, and Maldives, Kuehne+Nagel, reinforced the importance of digital capabilities and customer-centricity. “Our key learning this year is resilience and customer focus matter more than ever. Investments in air logistics, sea logistics, e-commerce fulfillment, cold chain for pharma, and cloud infra logistics enable us to deliver agility, transparency, and reliability across market cycles.” Jha added that technology-enabled services will continue to be key differentiators in helping customers navigate complexity with confidence.

Across sectors and geographies, leaders’ reflections converge on three essential themes — resilience, adaptability, and digital transformation. This year has proved that in a world of geopolitical uncertainty, regulatory flux, and rapidly evolving market demands, businesses that anticipate challenges, invest in technology, and maintain a customer-first approach positioned to turn disruption into opportunity. In logistics and aviation alike, the story is clear — survival belongs to those who adapt, and growth belongs to those who innovate with purpose.

Mahendra Shah, Chairman and MD, V Trans Group said, “Geopolitical tensions, regulatory changes, and evolving trade routes have increased cost and complexity in logistics. These events forced route diversification, investment in compliance, infrastructure, and adoption of multimodal transport. Despite challenges, they accelerated modernisation and resilience, positioning India as a global logistics hub. The firm strengthened multimodal capabilities, enhanced digital systems, reinforced compliance to ensure seamless operations, minimise risks, and converted market uncertainties into opportunities for stable and resilient growth. This year highlighted adaptability, digital transformation, and strong multimodal capabilities drove consistent performance. For us, technology, people, and sustainability remain the pillars of logistics excellence. In 2026, digital optimisation, multimodal logistics, and sustainability-led operations will drive the sector. We are advancing with technology upgrades, network expansion, and green initiatives to deliver efficient, compliant, and future-ready logistics solutions across India.”

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