India’s Air Cargo Boom: Yashpal Sharma Highlights Key Challenges and Opportunities

New Delhi [India], July 4: In response to the Red Sea crisis, air freight from India has surged, positioning the country to achieve its goal of handling 10 million tonnes (MT) of air cargo by 2030-31. India’s air freight peaked at over 3.5 MT in 2017-18, dipped due to COVID-19, and has now returned to the same level.

Key Issues and Opportunities

Yashpal Sharma, president of the Air Cargo Forum of India (ACFI), stressed the need to reduce trans-shipment times and allow foreign freighter aircraft to serve multiple Indian cities. He noted that even a small shift in global freight to air could significantly boost volumes.

Current Market Dynamics

India’s air freight market is divided into international imports, exports, and domestic cargo, each making up about one-third of the total volume. Less than 15% of air cargo is transported by freighter aircraft, with most carried in passenger planes.

Freighter Aircraft Fluctuations

Piyush Srivastava, senior economic advisor in the aviation ministry, highlighted the changes in the number of freighter aircraft. The number rose from six pre-COVID to 28 during the pandemic and has now stabilized at 18.

Infrastructure and Integration

Surendra Kumar, joint secretary at the Department for Promotion of Industry and Internal Trade (DPIIT), pointed out that while 70 airports have cargo facilities, they are underutilized due to poor integration with other transport modes. He mentioned ongoing efforts to develop the sector and reduce logistics costs.

Future Projections

Post-COVID, the Red Sea crisis has accelerated air cargo growth, with exports to the US, Canada, and Europe more than doubling. India’s current air cargo handling capacity is around 6.5 million tonnes, with plans to expand to meet the 10 MT target by 2030. The ACFI projects the market will grow from USD 12.41 billion in 2023 to USD 16.37 billion by 2027, with a CAGR of 5.7%.