The Air Freight Industry in India: A Closer Look
The Red Sea crisis has had a significant impact on the air freight industry in India. In recent months, air freight from India has more than doubled, indicating a positive trend towards achieving the country’s target of 10 million tonnes by 2030-31. With peak air freight reaching over 3.5 MT in 2017-18 and bouncing back to the same level post-Covid, the industry is poised for growth.
The Air Cargo Forum of India (ACFI) president, Yashpal Sharma, highlighted two key issues that need to be addressed to meet the industry target in the next five years. These issues include reducing trans-shipment time and allowing double dipping by foreign freighter aircraft to multiple cities in India.
India’s air freight market is unique, with a balanced share of international imports, exports, and domestic cargo movement. Currently, less than 15% of air cargo is transported by freighter aircraft, with the rest being carried in the belly of passenger aircraft.
Piyush Srivastava, senior economic advisor in the aviation ministry, noted the increase in freighter aircraft during the Covid pandemic, which temporarily utilized passenger planes for cargo transport. However, the number of freighter aircraft has fluctuated, emphasizing the need for consistent growth in the sector.
Looking ahead, Surendra Kumar, joint secretary at DPIIT, pointed out the underutilization of cargo facilities at 70 airports in India. He stressed the importance of integrated sector development and reducing logistics costs to boost the country’s position as a major global supply chain hub.
With projects worth Rs 13.5 lakh crore under the PM Gati Shakti initiative, India is poised to strengthen its air freight industry and accelerate economic growth. The recent focus on air cargo post-Covid, coupled with the challenges and opportunities presented by the Red Sea crisis, sets the stage for a promising future for India’s air freight sector.
