Amid intensifying pressure on the global airfreight sector to modernise, harmonise, and decarbonise, a new strategic partnership between India’s Air Cargo Forum India (ACFI) and the International Air Cargo Association (TIACA) marks a potentially pivotal moment for emerging-market integration into global freight systems.

Announced during the ACFI Annual Conclave 2025, the memorandum of understanding (MoU) signed by ACFI president Sanjiv Edward and TIACA director general Glyn Hughes signals more than symbolic cooperation—it represents a structured policy alignment effort amid a fractured global regulatory landscape and growing geopolitical headwinds.

An industry at the crossroads: policy urgency and competitive convergence

The global airfreight market, valued at approximately US$150 billion in 2024, is facing structural pressures—ranging from volatile energy prices and decarbonisation mandates to digital compliance deadlines and mounting trade fragmentation. With cargo volumes still adjusting post-pandemic and regulatory bodies such as ICAO and the European Commission accelerating the shift towards paperless and emissions-accountable operations, the timing of the ACFI–TIACA pact is strategically aligned.

India’s airfreight sector, currently handling around 3.3 million tonnes per annum, is projected to double to over 6 million tonnes by 2030, according to IATA. However, this projected growth risks being undermined by legacy systems, procedural inefficiencies, and non-alignment with global trade and environmental, social and governance (ESG) standards.

The MoU is therefore widely interpreted as a vehicle for policy transformation—designed to help India navigate these systemic pressures while positioning itself as a compliant, scalable hub for global trade.

“Global cargo does not stop at borders—it flows through harmonised systems. Our collaboration with ACFI is aimed at ensuring India is part of that harmonised flow,” noted Glyn Hughes, director general of TIACA.

Policy and regulatory implications: digital, ESG and trade reform

The ACFI–TIACA MoU offers a broad framework for harmonisation in three critical domains: digital transformation, ESG integration, and trade policy standardisation. For Indian airfreight stakeholders, these are not mere operational enhancements but prerequisites for international interoperability and market access.
Digitalisation:

With ICAO targeting 100 percent digital cargo documentation by 2035 and IATA’s One Record initiative pushing for globally interoperable data standards, India faces a steep climb. Currently, less than 10 percent of airfreight in India moves through fully digitised channels, according to a FICCI–Deloitte logistics readiness report.

Under the MoU, TIACA will provide technical support and policy guidance to align India’s cargo community systems with emerging global digital norms. This will likely include pilot initiatives to implement blockchain-based track-and-trace capabilities and collaborative platforms that support customs automation and multimodal integration.

“Digitalisation is not just about efficiency—it’s about resilience, predictability, and cross-border accountability,” Hughes reaffirmed.

Sustainability and ESG compliance

ESG obligations are fast becoming non-negotiable for cross-border trade, especially with the EU’s Carbon Border Adjustment Mechanism (CBAM) and the Corporate Sustainability Reporting Directive (CSRD) entering into force. According to TIACA, less than 15 percent of global airfreight corridors are currently ESG-audited.
The MoU will allow Indian cargo operators to participate in TIACA’s BlueSky Programme—a voluntary global ESG benchmarking tool. This move could catalyse a wider uptake of carbon footprint mapping, audit-ready emissions tracking, and gender-inclusive workforce practices in Indian airfreight corridors.

“This partnership enables Indian cargo companies to not just meet but lead in adopting ESG metrics that are becoming prerequisites in global trade lanes,” an ACFI spokesperson observed.

Customs and trade facilitation

India’s airfreight growth trajectory is currently bottlenecked by bureaucratic compliance layers and documentation redundancies. Industry reports suggest over 30 percent of cargo clearance delays are due to non-standardised documentation protocols and offline clearance procedures.

The MoU aims to establish bilateral task forces to align Indian customs policies with global facilitation standards, with a focus on enabling pre-arrival processing, e-AWB adoption, and harmonised HS code validation. This becomes particularly important in the context of India’s free trade agreements (FTAs), such as the India–EU Trade and Investment Agreement and the India–UAE CEPA, both of which contain air logistics facilitation chapters.

Institutional mechanisms and implementation pathways

Unlike purely symbolic agreements, the ACFI–TIACA MoU introduces a formalised mechanism of annual work plans, joint white papers, and multilateral summits. These initiatives are intended to convert broad strategic intent into actionable outcomes.
Proposed deliverables under the MoU include:
• ESG and digital audit readiness frameworks for Indian airports
• White papers on resilience and risk architecture in airfreight
• Capacity building for MSMEs in airfreight operations
• Joint advisory panels on customs reform and international cargo standards

While the MoU does not impose legal obligations, it represents a coordinated policy commitment that could unlock access to global cargo lanes—especially for Indian SMEs and airport developers seeking alignment with G7 and EU supply chains.
“India cannot scale its cargo footprint in isolation. This MoU helps us align with the best, learn from the best, and build capacity that can stand the test of global scrutiny,” said an executive from one of India’s major cargo terminal operators.

Geopolitical undercurrents and Global South diplomacy

India’s deepening involvement in global logistics governance also reflects a shifting balance in trade diplomacy. As it champions the interests of the Global South and positions itself as a logistical counterweight in the Indo-Pacific, such partnerships bolster its ability to influence rule-setting bodies rather than merely adapting to them.

The MoU also complements India’s G20 presidency outcomes, where digital trade facilitation and sustainable logistics were key pillars, as well as its participation in ICAO’s 2024 Global Aviation Facilitation Summit.

In this light, the ACFI–TIACA MoU can be seen not just as a national logistics strategy, but as a diplomatic tool to entrench India’s role in shaping 21st-century airfreight norms.

Outlook: execution will be the deciding factor

While the MoU is a welcome development in terms of strategic alignment, its success hinges on execution, stakeholder buy-in, and regulatory follow-through. Past initiatives have often stalled due to fragmented implementation, lack of cross-ministerial coordination, and inconsistent private sector participation.
However, with India’s National Logistics Policy and proposed Air Cargo Policy revisions offering fertile ground for reform, there is cautious optimism that this MoU may catalyse meaningful industry transformation.
As Edward  summarised: “In today’s air cargo economy, collaboration is not optional—it’s existential.”