Investments in state-of-the-art cargo terminals, improved air traffic management systems, and robust digital platforms are paving the way for unprecedented growth. Moreover, the collaboration between government bodies, private enterprises, and international stakeholders is vital in driving this vision forward. As India charts this course, the sky is not the limit but a stepping stone to a future where its air cargo sector plays a pivotal role in global trade, economic development, and connectivity.

The Air Cargo Federation of India (ACFI) Conclave 2024, hosted at the iconic Taj Palace, New Delhi, featured a pivotal fireside chat titled “The Way to 10 Million Tonnes & Beyond for India Skies.” This session brought together two industry stalwarts, Mark Sutch, Chief Commercial Officer Cargo at IndiGo Airlines, and Yashpal Sharma, Managing Director of Skyways Group, to discuss India’s ambitious goal of handling 10 million tonnes of air cargo and the strategies to achieve this target.

Sutch began by providing a comprehensive overview of the current state of India’s air cargo industry. He highlighted that India’s air cargo throughput has grown steadily over the past decade, reaching approximately 3.6 million tonnes in 2023. This growth has been driven by a combination of factors, including increased international trade, a burgeoning e-commerce sector, and strategic infrastructure investments.

“India is poised to become a global air cargo hub. To achieve our target of 10 million tonnes, we need to focus on expanding capacity, enhancing operational efficiency, and leveraging technology,” Sutch stated.

Sharma elaborated on the key drivers that would propel India towards the 10 million tonnes milestone. He identified several critical areas, including, Infrastructure Development, where significant investments in airport infrastructure, such as the development of new cargo terminals and the expansion of existing ones, are essential. The Noida International Airport and Navi Mumbai International Airport are prime examples of such projects, pointed Sharma in his views.

Speaking on policy support, Sharma noted that government policies and regulatory frameworks play a crucial role and The National Air Cargo Policy, which aims to create a robust and efficient air cargo ecosystem, is a step in the right direction. Furthermore, Adoption of advanced technologies such as blockchain, IoT, and AI can streamline operations, enhance transparency, and reduce cost and thus add value to the cargo chain. And finally the glorious e-commerce Growth, where rapid growth of e-commerce in India is driving demand for efficient and reliable air cargo services.

“While the potential is immense, we must address challenges such as infrastructure bottlenecks, regulatory hurdles, and the need for skilled manpower,” Sharma noted.

The discussion then turned to the role of technology in transforming India’s air cargo industry. Mr. Sutch highlighted IndiGo’s initiatives in this regard, such as the implementation of automated cargo handling systems, real-time tracking solutions, and AI-driven demand forecasting tools. These technologies have enabled IndiGo to enhance operational efficiency, reduce turnaround times, and provide superior customer service.

“Technology is a game-changer for the air cargo industry. By leveraging digital tools, we can optimize our operations, improve accuracy, and meet the growing demands of our customers,” Sutch emphasised.

Sharma stressed the importance of collaboration among various stakeholders, including airlines, logistics providers, government agencies, and technology firms. He highlighted Skyways Group’s efforts to forge strategic partnerships and create integrated logistics solutions that offer end-to-end visibility and seamless connectivity.

“Collaboration is key to achieving our ambitious targets. By working together, we can create a cohesive and efficient air cargo ecosystem that benefits all stakeholders,” Sharma stated.

Sustainable Growth and Environmental Responsibility were the highlight topic at the fireside chat, with the importance of sustainability in the air cargo industry.

Sutch underscored IndiGo’s commitment to reducing its carbon footprint through various initiatives, such as using fuel-efficient aircraft, optimising flight routes, and implementing green practices in cargo handling.

“Environmental responsibility is not just a regulatory requirement; it’s a business imperative. Sustainable practices will help us build a resilient and future-ready air cargo industry,” Sutch remarked.

While addressing the challenges and opportunities in the air cargo domain, Sutch and Sharma expressed optimism about the future of India’s air cargo industry. They outlined a strategic roadmap to achieve the 10 million tonnes target, with the emphasis on the areas like Capacity Expansion is a must for Developing new cargo terminals, enhancing existing infrastructure, and increasing warehouse capacity.

Addressing on Regulatory Reforms in streamlining customs processes, reducing bureaucratic red tape, and implementing industry-friendly policies. With the attention shifted to the Technological Integration, it was agreed that, Investing in advanced technologies to improve operational efficiency and customer experience is must for the industry and this will help India achieve the lion’s share in the transhipment market, which the country is struggling to achieve.

With the need of addressing employability, Skill Development was one of the key factor of this discussion, with emphasis on training and upskilling the workforce to meet the demands of a rapidly evolving industry. And in conclusion, the Sustainable Practices in adopting green technologies and practices to ensure environmentally responsible growth were regarded as the new set benchmark for the industry.

While addressing the fire chat, Sutch and Sharma highlighted interesting figures from stating that, Current Throughput of India’s air cargo industry handled approximately 3.6 million tonnes in 2023. The projected growth factor in air cargo industry aims to reach 10 million tonnes by 2030. To achieve this target within the stipulated timeline, e-commerce has been responsible for the Impact.

e-commerce is expected to drive a significant portion of this growth, with an estimated annual increase of 20-25% in air cargo volumes. However, to achieve this target, India needs to address its infrastructure limitations and simultaneously have to uplift Infrastructure Investments with Major projects like Noida International Airport and Navi Mumbai International Airport, which are expected to add substantial cargo handling capacity and provide boost to the industry.