Ayesha Katgara, Head of Corporate Strategy at Jeena & Company shares, “The year 2024 has been nothing but transformative for the logistics sector. It has been defined by evolving customer expectations, rise of e-commerce, enhanced digitalisation and growing focus on sustainability. While the global logistics have faced unprecedented challenges, India has taken initial steps towards creating a conducive environment for the sector to thrive in the long-term. Key policies like the National Cold Chain Infrastructure Project (NCCIP) and the PM Gati Shakti initiative have been instrumental in optimising costs and streamlining operations, exemplified by the laying down of 8,891 km of roads and 27,000 km of railway lines. They have empowered industry players to optimise efficiency, provide unparalleled value to our patronage, and nurture continuous transformation. As we step in to 2025, we foresee a deeper integration of AI, machine learning, and robotic process automation, driving a profound transformation in sector-wide efficiency. We believe that adopting green logistics solutions, will enhance our sector’s sustainability. At Jeena and Company, we are dedicated to harnessing these advancements to meet the growing demands of e-commerce and global trade. Our goal is to set new benchmarks in service excellence while encouraging a more resilient and environmentally sustainable logistics landscape.”

M Afzal Malbarwala, MD, Galaxy Freight says, “18 per cent GST on air freight is a big concern among the cargo agents and has affected trade as well. It has also increased costs for exporters and importers, potentially impacting India’s competitiveness in the global market. The government should consider reviving the “0” % tax on air freight to support trade growth.”

Beyond Sqfeet Supply Chain Solutions has signed a long-term strategic expansion project in Kolkata, at Ganesh Park, Ranihati, Amta, spanning over 1.10 lakh square feet. This advanced warehouse is designed to accommodate diverse storage needs, featuring heavy-duty racks with a capacity of 5,000 pallet positions (expandable to 8,000) for B2B Businesses, non-racking area for bulk and processing, two levels of RCC blocks tailored for B2C Operations and cold chain conversions. With existing warehouses in Dhulagarh and Dankuni, this expansion elevates Beyond Sqfeet’s footprint in Kolkata to an impressive 2,00,000 square feet by the end of its first year of operations. Beyond Sqfeet already serves major clients across various sectors, including Wellness, Fashion and lifestyle, Healthcare and Pharmaceuticals, IT, and prominent B2C brands. This expansion underscores the company’s commitment to creating a well-connected and efficient logistics ecosystem in the region. With seamlessly integration of a robust distribution network ( FTL / PTL ) that spans West Bengal and is supported by cross-dock centres in Siliguri, Guwahati, Ranchi, and Patna, Beyond Sqft looks to penetrate East & Micro market and position as a large 3PL Operator in the Geography. West Bengal, particularly Kolkata, has emerged as a key logistics and warehousing hub in eastern India, thanks to its strategic location and strong trade linkages with neighbouring countries such as Bangladesh and Nepal. The state serves as a vital gateway for trade and commerce while catering to a significant consumer base across Bihar, Odisha, Jharkhand, and Assam.

The air cargo industry is also set to embrace transformative trends such as hyper-automation which includes integrating AI-driven tools, robotic automation, and autonomous vehicles,” says Neha Kumari, Business Head – nGen by Cargoflash. Data driven insights include leveraging real-time analytics to optimise resources and respond proactively to disruptions. E-commerce growth requires streamlining operations for high-volume, cross-border logistics with seamless integration. Aligning IT systems with carbon tracking and eco-friendly practices. Ensuring agility, scalability, and risk mitigation to navigate uncertainties. nGen by Cargo Flash is at the forefront, empowering the air cargo industry to adapt, grow, and lead with innovative, future-ready IT solutions.”  

Dinesh Krishnan, Chairman, ACAAI Southern Region says, “The global and Indian freight forwarding industry operates within a framework of strict national and international regulations. A significant proportion of the industry comprises SME’s, dedicated to addressing the diverse and dynamic needs of the export and import communities which are again a major SME sector. In recent years, GST administration and compliance regulations have imposed considerable challenges for the logistics industry in tax administration and compliance. A lack of nuanced understanding of the sector’s unique operations by policymakers, coupled with poor coordination between central authorities and state level tax administrators, has left the industry grappling with uncertainties and inconsistencies. The introduction of GST on international freight has particularly disrupted the industry’s financial stability. It is a revenue neutral manufacturing / trading EXIM customer’s tax burden, imposed on the freight forwarding community in the form on GST on air and ocean freight.  This has created an artificial financial crises and fund flow strain by locking freight forwarders business funds with the government and waiting for GST credit offset or refunds on GST for overseas billing. Crores of freight forwarders funds are stuck with GST refunds, beside rampant notices from the authorities, creating a liquidity tsunami and more expenses on tax administration across the country. The consequences have been severe since the GST on freight, numerous freight forwarders have shut down, while others are being driven out of business unbale to a bare this burden on blocked funds & tussle with GST authorities. This attrition risks leaving the burgeoning EXIM (export-import) trade reliant on a limited number of service providers, potentially creating monopolistic conditions and supply chain inefficiencies in the long term. Immediate action …

Vipin Vohra, Chairman, Continental Carriers says, “Following the launch of GST in 2017, export air cargo was exempted from GST, starting January 2018. However, this exemption ended on October 1, 2022, imposing an 18% GST on air freight. Trade bodies have urged the government to reinstate this exemption, aligning with global practices where export freight services are zero-rated. The lack of exemption has distressed Indian freight forwarders, raised costs for exporters, and hindered cash flow, agents are calling for a permanent exemption. Cargo agents in India face significant challenges in obtaining GST reimbursements for export shipments. Delays in refund processing, complex documentation, and data mismatches between GST returns and shipping bills hinder smooth operations. Additionally, ambiguities in eligibility for Input Tax Credit (ITC) and blocked credits strain cash flows. The high compliance burden, coupled with inconsistent interpretations of GST laws, further exacerbates the issue. Expedited refunds, automation, clear guidelines, and a single-window grievance mechanism are essential to resolve these struggles effectively.”

Sunil Kohli, Managing Director, Rahat Cargo says, “Our government has all along been encouraging the shippers to accelerate their export activities which creates an economical growth within the country apart from yielding substantial foreign exchange. However, levying a GST on export products has resulted in an additional & avoidable financial liability on the exporters majority of whom have already been facing the fiscal roadblocks on various heads. And consequently, the businesses especially the SMEs have to encounter enhanced compliance requirements with multiple deadlines leading to higher administrative cost. The GST has many complexities with assorted tax rates & rules making it difficult for an average exporter to navigate without professional assistance which entails extra expenses. Moreover, certain products & services have become more expensive due to higher GST. Also, the GST portal has frequent technical glitches. It is therefore felt that the exports should be kept out of the GST regime.”

Arun Kumar, President, Association of Multimodal Transport Operators of India (AMTOI) says, “Rent-seeking behaviour is detrimental to any economy, especially one aspiring to be the third largest globally. Imposing taxes on exports or their components undermines cash flow for the MSME-dominated freight forwarding sector, which operates on razor-thin margins of less than 2%. With an 18% GST outlay and delayed reversals, their margins are decimated. This ill-conceived levy under GST is crippling agri-exports by air and jeopardizing the freight forwarding community’s survival.

Satish Lakkaraju, CEO, NexGen Logistics, Garudavega shares, “The introduction of 18% GST on air freight is significantly impacting the trade, logistics, e-commerce sectors, and causing distress among cargo agents and courier companies. This tax hike is driving up operational costs, resulting in higher freight charges for both businesses and consumers. Additionally, C2C (customer-to-customer) customers are unable to claim GST credit, making it an additional, non-recoverable cost. Since ocean freight is taxed at 5%, we recommend reducing the GST on air freight to be 5% as well, ensuring parity and easing the financial burden across the industry.”

“The imposition of 18% GST on air freight is a major setback for the trade, significantly increasing logistics costs and hampering India’s competitiveness in global markets. Cargo agents are deeply distressed, as this move threatens their sustainability amidst already tight margins. Lot of money / refund is pending of agents as the process of refund is manual and time consuming. The industry urges the government to reconsider this decision to promote ease of doing business and support India’s vision of becoming a global logistics hub.”