While India is preparing to implement its fiscal budget 2025, the air freight industry calls on policymakers to implement targeted measures that improve infrastructure, digitization and regulatory efficiency.
Dr Vandana Singh, an expert in supply chain and logistics policy, underlined the need for air freight as a fundamental driver of trade expansion and economic acceleration. “India has the potential to become a global air freight leader, but it requires strategic investments in technology, infrastructure and policy reforms to ensure seamless connectivity and efficiency,” she says.
As India currently handles about three and a half million tonnes of air freight annually, strategic interventions can increase this figure to 10 million tonnes within the next three to five years, which corresponds to the government’s Vision 2030 vision.
Future ready -to -infrastructure
The expansion and modernization of India’s air freight infrastructure is an important priority for policy. While large hubs such as Delhi, Mumbai and Bengaluru have strong cargo handling ability, the development of Tier-2 and Tier-3 airports in air freight remains a focus area.
The government’s Gati Shakti initiative laid the basis for multimodal logistics integration, but further investment is needed in dedicated cargo corridors, warehouse automation and improved cargo terminals. Freight ship plane capacity is another critical component.
While passenger abdominal cargo still produces a major contributor, dedicated cargo ship services must be expanded, especially for high value sectors such as pharmaceutical products, perishable products and e-commerce. “The encouragement of Indian carriers to expand their cargo fleet through tax benefits and financial incentives is essential to meet the growing demand and reduce the dependence on international carriers,” Dr. Singh emphasizes.
Use digitization and automation
Best practices emphasize digitization as an important efficiency in air freight operations. The acceptance of AI-powered cargo tracking systems, blockchain for transaction transparency and India’s movement towards paperless trade should remain the most important priorities. The National Logistics Policy (NLP) has given a framework for this transition, but seamless implementation will require deeper collaboration between government agencies and industry stakeholders. Customs clearance is still a challenge for air freight operators, with delays increasing operating costs.
Although initiatives such as faceless assessment have streamlined some processes, further improvements, such as risk-based inspections and single window clearance mechanisms, will be needed.
“Regulatory simplification and automation in customs will not only reduce the turnaround times, but also increase the competitiveness in global logistics,” Dr. Singh argued.
Sustainability and green logistics India’s air freight policy should be in line with global sustainability trends by promoting green aviation initiatives. The adoption of sustainable aviation fuel (SAF), carbon distribution mechanisms and investments in energy-effective cargo handling infrastructure should be central to policy discussions. With increasing pressure from international trading partners on compliance with the environment, India must integrate green logistical standards to maintain its global positioning.
Policy incentives for electrical land handling equipment, solar-powered warehouses and sustainable packaging material should also be considered. “Sustainability is no longer optional; This is an essential industry. Through the embedding of green aviation practices in policy frameworks, India can strengthen its global trade while reducing its carbon footprint, ”Dr. Singh said.
Global hub
Apart from operational efficiency, India’s air freight policy should focus on positioning the country as a central player in global supply chains. Improved air connection, strategic trading agreements and direct foreign investment (FDI) in air freight infrastructure will play an important role in long -term growth.
The establishment of free trade zones (FTZs) and special economic zones (SEZs) dedicated to air logistics would give a significant boost, attracting multinational logistics suppliers and promoting innovation in freight management. Furthermore, investments in human capital, including skills training for cargo handlers and regulatory staff, will ensure that India’s workforce is equipped to meet future demands in the industry.
Road to 2030
The air freight industry is an important enabler for the economic ambitions of India, which supports the expansion of trade and industrial growth. Like dr. Singh has emphasized, “the upcoming budget provides a decisive opportunity to reform India’s air freight ecosystem through strategic policy measures that prioritize the development of efficiency, sustainability and infrastructure.” With targeted reforms and a proactive policy approach, India can emerge as a world leader in air freight logistics, paving the way for sustainable economic growth and improved global trading integration.
