India’s Air Cargo Sector at a Crossroads

India’s Air Cargo Sector at a Crossroads

As India cements its position as a key player in global trade, the air cargo industry finds itself at an inflection point, driven by digital transformation, infrastructure expansion, and sustainability imperatives. 

The digital push

India’s air cargo industry is undergoing a digital revolution, with automation and artificial intelligence redefining operational efficiencies.

“Automation, big data analytics, and robotic process automation (RPA) have significantly improved transit times and shipment visibility. Our ‘Clear-in-Air’ initiative, for instance, allows customs clearance to be completed during transit, reducing delays and expediting delivery,” Manish Patel, Vice President – Operations at DHL Express India, explained.

Cloud-based solutions are playing a pivotal role in ensuring business continuity, especially during peak seasons. AI-driven chatbots enhance customer interactions, while predictive data analytics help anticipate volume surges and optimise resource allocation. “Technology is not just an enabler but a necessity to stay competitive in an evolving global trade environment,” he added.

Strengthening infrastructure

With India poised for a logistics boom, infrastructure remains a cornerstone of air cargo development, with DHL Express making significant investments to bolster capacity and efficiency.

“The Automatic Shipment Sorting Hub in New Delhi, spanning 34,000 sq ft, has increased productivity by 30 percent. It processes up to 2,000 shipments per hour and is Leadership in Energy and Environmental Design (LEED) Gold certified, integrating energy-efficient systems to reduce environmental impact,” Patel notes.

“We are also committing €200 million (approximately US$210 million) over the next five years to expand its gateways, service centres, and fleet. The expansion aligns with India’s growing demand for time-definite logistics, driven by e-commerce and cross-border trade,” Patel asserted.

This situation highlights the need for a collaborative approach to address infrastructure bottlenecks. “To unlock India’s full logistics potential, we require dedicated express cargo bays, streamlined customs processes, and digitised documentation. Public-private partnerships will be instrumental in bridging these gaps,” he stated.

The sustainability imperative

As the global supply chain shifts towards greener alternatives, sustainability is a key priority for air cargo operators. DHL Express is advancing its decarbonisation agenda through initiatives like GoGreen Plus, which enables businesses to leverage Sustainable Aviation Fuel (SAF), reducing shipment-related emissions by up to 70 percent.

“Decarbonisation isn’t just a corporate responsibility—it’s an operational necessity. Our focus on SAF, electric vehicles, and eco-friendly facilities underscores our commitment to reducing our carbon footprint,” Patel affirmed.

India’s logistics sector must align with global sustainability standards to remain competitive. “Regulatory frameworks that incentivise sustainable practices, coupled with industry-wide collaboration, will be crucial in accelerating the transition to greener logistics,” he added.

Moving forward

Despite advancements, regulatory challenges persist. Goods and Services Tax (GST) compliance remains fragmented, requiring multiple state-level registrations that complicate documentation processes. Space constraints at express cargo terminals further hinder efficiency.

“India’s aviation infrastructure must evolve to meet growing trade demands. Enhanced collaboration between government agencies and industry players is vital to driving efficiency and unlocking growth opportunities,” Patel asserted.

Future of Indian air cargo

Looking ahead, the Indian air cargo industry must continue its trajectory of digital innovation, infrastructure expansion, and sustainability integration.

“Future-proofing logistics operations is not an option—it’s a necessity. By embracing digitalisation, expanding capacity, and championing sustainability, we can ensure seamless global connectivity and empower Indian businesses to compete on an international scale,” Patel concluded.

Picture of Ajinkya Gurav

Ajinkya Gurav

With a passion for aviation, Ajinkya Gurav graduated from De Montford University with a Master’s degree in Air Transport Management. Over the past decade, he has written insightful analysis and captivating coverage around passenger and cargo operations. Gurav joined Air Cargo Week as its Regional Representative in 2024. Got news or comment to share? Contact ajinkya.gurav@aircargoweek.com

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