The industrial & logistics sector in India registered a growth of 47 per cent YoY growth during the October to December period (Q4 2024), as per the CBRE report. The growth was primarily pushed by strong demand from 3PL and FMCG segments. The leasing in the sector touched 39.5 million sq.ft mark in CY2024 across the top eight cities, the report added. The growth was majorly supported by Delhi-NCR, Bengaluru, and Kolkata, with an aggregate contribution of 60 per cent in the total leasing activity during the year. The report further stated that the majority of the space leased was led by small-sized transactions (below 50,000 sq.ft), a total of 43 per cent of the total leasing volume. The medium-sized transactions (50,000-1,00,000 sq.ft) and large-sized transactions (more than 1,00,000 sq.ft) each contributed 28 per cent to the total absorption.  

The International Air Transport Association (IATA), Asia-Pacific airlines saw 14.5 per cent year-on-year demand growth for air cargo in 2024, the strongest among all the regions. The capacity increased by 11.3 per cent YoY, whereas demand growth for the month of December YoY surged 8.4 per cent. Asia-Pacific airlines were followed by Middle Eastern carriers, which saw an increase of 11.2 per cent in demand growth for air cargo in 2024. The capacity increased by 7.8 per cent year-on-year, during the same period. “Air cargo was the standout performer in 2024 with airlines moving more air cargo than ever before. Importantly, it was a year of profitable growth. Demand, up 11.3 per cent year-on-year, was boosted by particularly strong e-commerce and various ocean shipping restrictions,” Willie Walsh, Director General, IATA, said.

Amar More, Director & Co-Founder of Kale Logistics Solutions, said, “Modified UDAAN scheme is significant as it continues to connect several Indian cities to major urban clusters and the world. Bihar being a large state, developing Greenfield and Brownfield airports will promote growth of the region and make way for cargo movement of perishables from the state to the urban hubs and make way for exports. Upgradation of the air cargo industry for perishables and making cargo screening user-friendly will make air cargo movement a cake walk for all. Overall, this budget is streamlining the growth prospects set for a Viksit Bharat.”

Amit Bhargava, Partner and National Head, Mining & Metals, KPMG in India, said “Union Budget 2025 has recognized and empowered the aspirations of the metals and mining sector to further strengthen its global positioning, in terms of scale of production, greener product offerings and increased innovation. The budget supports specifically in realizing mining potential, availability of digital capabilities, increasing value chain competitiveness, enabling energy transition and decarbonization, encouraging critical minerals related circularity and logistics efficiency.” Some of the key takeaways are: • Minor minerals mining and critical minerals recovery from tailings is a step to realize the potential of mining and availability of critical minerals (including exemption/ reduction of BCD on key critical minerals) • Empowering MSMEs to enhance exports, access to technology and funding would be a step for improving the competitiveness of sector’s downstream value chain • Clean technology focus that helps establishing domestic solar/ EV related manufacturing would be critical in further expediting the energy transition of the sector • Centre of Excellence for AI and emphasis on Industry 4.0 would be instrumental in ensuring availability of key digital capabilities, so critically required by the sector • India post infrastructure to be leveraged in bringing in greater logistics efficiencies

C K Govil, President, ACAAI says, “The Union Budget 2025-26 has been designed with a strategic focus on balancing economic growth and fiscal responsibility, ensuring that development reaches various sectors while maintaining prudent financial discipline. Here’s a breakdown of its key aspects: Manufacturing and Industrial Development, Make in India’ Push: National Manufacturing Mission to promote domestic production. Support for MSMEs: Expanded credit guarantee schemes to help small businesses grow, Ease of Doing Business: Reduction in compliance burdens and faster approvals for industries. Infrastructure and Urban Development •Interest-Free Loans to States: ₹1.5 trillion allocated for state infrastructure projects, boosting regional development. •Maritime Development Fund: Investments in port infrastructure to enhance trade efficiency. •Urban Challenge Fund: Encouraging smart city projects and innovative urban planning. Digital & Technological Advancement •AI and Innovation Fund: Support for AI startups, research, and skill development. •Expansion of Digital Public Infrastructure: Strengthening India’s digital economy, fintech, and cybersecurity measures. 2. Fiscal Responsibility and Stability •Targeted Fiscal Deficit Reduction: The government aims to bring down the fiscal deficit to 4.5% of GDP, ensuring financial stability. •Sustainable Borrowing: Maintaining fiscal discipline while funding infrastructure and social programs. •Rationalizing Subsidies: Efficient targeting of subsidies to avoid unnecessary fiscal burdens. 3. Support for the Middle Class and Consumers •Income Tax Reforms: Likely reductions or restructuring to boost disposable income and spending. •Affordable Housing Benefits: Strengthened PMAY (Pradhan Mantri Awas Yojana) for housing accessibility. •Consumer Spending Push: Incentives for sectors like real estate, automobiles, and FMCG to drive consumption. 4. Capital Market and Investor Confidence •Stock Market Growth: Positive response from investors post-budget announcement. •Regulatory Stability: Measures to ensure smooth capital flows and encourage investment. •Support for Startups & Entrepreneurship: Tax reliefs and …

Kale Logistics Solutions is all set to develop Africa’s first Airport Cargo Community System (ACS) for use by Mozambique Airport Handling Service (MAHS). The airport handling service company has invested in streamlining its operations digitally to be able to take advantage of Mozambique’s increasing air cargo volumes and potential to become a multimodal cargo hub within Africa. Kale’s ACS provides stakeholders with enhanced visibility and transparency, enabling the real-time tracking and monitoring of cargo movements, incorporating automated regulatory compliance checks. These further streamline operations and ensure adherence to industry standards. In the first phase of the MAHS project, integration of finance and customs systems is to be installed along with the latest GALAXY 3.0 – Kale’s airport cargo digital management system. Vineet Malhotra, Co-founder and Director, Kale Logistics Solutions said, “We at Kale are excited to deploy Africa’s first ACS. We are proud to bring our expertise and best practices to this collaboration, ensuring the highest standards of service and innovation. Developing ACS for a major player like MAHS in Mozambique is a milestone for Kale. We are committed to offer the best-in-class service for MAHS and look forward to having a long-lasting business relationship with them.”    

Vipin Vohra, Chairman, Continental Carriers, said, “Given the space constraints at major airports and increasing international air cargo volumes, the Union Budget must prioritise developing Air Freight Stations (AFSs) across India. These facilities, like ICDs/CFSs in ocean freight, will function as extended cargo handling points away from congested airport terminals, enabling customs clearance and cargo processing at off-airport locations. The establishment of AFS on a PAN India basis would not only decongest airport cargo terminals but also contribute to reducing overall logistics costs.” He hoped, “The budget might propose comprehensive investments in MMLPs that link highways, railways, ports, and airports. This approach seeks to reduce transportation time, minimise logistics costs, and enhance overall supply chain efficiency by developing infrastructure that facilitates quick and efficient cargo movement across the country.”

Air Cargo Forum India (ACFI) South India Conclave 2025 is scheduled for 31 January, Friday, at the Novotel Hotel, RGI Airport, Hyderabad. With the theme ‘Southern Gateways – Accelerating Global Trade Through Indian Air Cargo’, the conclave aims to highlight and harness South India’s potential as a hub for global trade and logistics. The conclave will address challenges and unlock opportunities for sustainable growth in the air cargo ecosystem through collaborative panels, insightful discussions, and key industry insights. The Chief Guest for the South India Conclave 2025 will be Duddilla Sridhar Babu, the Honourable Minister of IT, Government of Telangana. Sandeep Prakash, Chief Principal Commissioner of Customs, Hyderabad, will be the guest of honour. The conclave will feature discussions on topics such as Synergy between airlines and airports for driving economic growth, developing cargo infrastructure in tier II and III cities, and government initiatives supporting sectoral growth.

The International Air Transport Association (IATA) revealed full-year demand in 2024, measured in cargo tonne-kilometers (CTK) increased 11.3 per cent in comparison with 2023. The full-year 2024 demand growth surpassed the record volumes set in 2021. The Full-year capacity in 2024, measured in available cargo tonne-kilometers (ACTK), increased by 7.4 per cent compared to 2023 (9.6 per cent for international operations). “Air cargo was the standout performer in 2024 with airlines moving more air cargo than ever before. Importantly, it was a year of profitable growth. Demand, up 11.3 per cent year-on-year, was boosted by particularly strong e-commerce and various ocean shipping restrictions. This combined with airspace restrictions which limited capacity on some key long-haul routes to Asia helped to keep yields at exceptionally high levels. While average yields continued to soften from peaks in 2021-2022, they averaged 39 per cent higher than 2019,” Willie Walsh, Director General, IATA, said.

Shadowfax has completed the acquisition of CriticaLog, a premium logistics firm, reinforcing its position as a market leader in value-added logistics services. The firm has developed a wide range of value-added services alongside its core Express Parcel or Forward Logistics business. Key services include Quality Check-based Reverse Logistics, Hand-to-Hand Doorstep Exchange, Same Day Delivery—termed “Prime” services—and Quick Commerce 10-minute delivery. With this acquisition, Shadowfax is set to further expand its offerings by introducing comprehensive and customizable high-value item delivery services across India. “We are thrilled to welcome the exceptional team at CriticaLog into the Shadowfax family. Their expertise in managing high-value product movements with an industry-leading 0 per cent loss rate is unparalleled. With this acquisition, we are excited to expand our capabilities in delivering high-value items safely and reliably to more pin codes,” Abhishek Bansal, CEO & Co-founder, Shadowfax, said.