Category Archives: Aviation

M Afzal Malbarwala, MD, Galaxy Freight said, “The main drivers of merchandise export growth include electronic goods especially telecom products, drugs and pharmaceuticals, engineering goods, iron ore, cotton yarn/fabs/made-ups, handloom products, ceramic products and glassware. India is also making impressive strides in exporting petroleum products and automotive fuel.

Sunil Kohli, MD, Rahat Cargo said, “The commodities like engineering goods, electronic goods, pharmaceuticals, fresh vegetables and fruits and textiles are likely to accelerate the export activities in future. In order to promote the exports from Indian markets, the policies initiatives on various vital segments are expected from the government which should also consider addressing the complexities in disbursement of funds under the PLI schemes, apart from boosting incentivization which would help India’s pivot towards high-value exports. The manufacturing capabilities should also be strengthened on the domestic front.”

Vipin Vohra, Chairman, Continental Carriers said, “Future export drivers include electronics, electric vehicles, green energy components, and pharmaceuticals like biologics. IT services, AI-driven technologies, agro-processed products, and sustainable textiles also show strong potential. With global focus on renewable energy, sectors like solar panels and specialty chemicals will gain prominence. Innovation, value addition, and sustainable practices will ensure India’s competitive edge in these areas.”

Keku Bomi Gazder, MD and CEO, Aviapro Logistic Services said, “The rapid growth of e-commerce and demand for high-value, time-sensitive goods will further propel air cargo volumes, enhancing India’s role in global trade. According to industry projections, India’s air cargo volume is expected to grow by 8-10% annually, driven by the rise in e-commerce and demand for high-value goods. India’s aviation and logistics sector is poised to significantly boost exports, driven by the expansion of air cargo services, aircraft manufacturing, and MRO (Maintenance, Repair, and Overhaul) capabilities. As India strengthens its position as a global hub for aircraft production and assembly, the export of aviation components and technologies will increase.”

Chhatrapati Shivaji Maharaj International Airport (CSMIA) capped off 2024 on a high note, solidifying its role as a cornerstone of India’s air freight network by achieving significant milestones in cargo operations. International cargo volumes rose by an impressive 17 percent. Demonstrating continued efficiency, the airport’s cargo operations achieved the highest-ever daily tonnage of 204 MT, marking another milestone in the airport’s commitment to enabling seamless global trade. CSMIA’s Cargo Terminal achieved remarkable growth across both international and domestic cargo categories. In March 2024, the cargo operations set a new milestone by handling a record-breaking 60,659 metric tonnes (MT) of international cargo, underscoring its strategic significance and operational excellence. Throughout the year, CSMIA significantly enhanced global connectivity, now serving 687 international destinations. This expansion included new destinations such as Tripoli, Khabarovsk, Kaliningrad, Zhukovsky, Tyumen, Damascus, Honinabi, and Chisinau. Domestically, the airport reinforced its position as a vital logistics hub, prioritising pharmaceuticals, automobile goods, and dangerous goods (DG), thereby strengthening its role in a comprehensive air cargo ecosystem. Notably, international cargo volumes at CSMIA were split between 55 percent of exports and 45percent of imports, with London, Frankfurt, Chicago, Dubai, and Amsterdam emerging as the top global destinations. On the international front, pharmaceuticals, agro products, and automobile goods emerged as key drivers, recording year-on-year increases of 24 percent, 22 percent, and 20 percent, respectively. On the domestic front, automobile goods led the surge with a remarkable 31 percent growth, followed by engineering goods at 22 percent and post office mail at 15percent. The festive season further amplified the e-commerce boom, with international shipments witnessing a 53 percent year-on-year growth and domestic e-commerce goods achieving an 11 percent increase. Agricultural exports also reached …

Gregory Goba Ble, Head of UPS India and Director of MOVIN Express said, “Investments in the logistics sector can support India’s trade goals, enhance economic efficiency and encourage MSMEs to scale-up. To further strengthen India’s position in global markets, achieve the objective of National Logistics policy, and reach the export target of US$2 trillion by 2030, the thrust should be to simplify export compliance procedures and reduce regulatory cost for logistics players. We hope to see measures to expedite e-commerce clearances and simplify cross-border online transactions. There needs to be increased budget allocation for the healthcare sector, which relies heavily on a robust and integrated logistics network. This will ensure efficient delivery of medical supplies and increase the sector’s overall effectiveness to cater to pharmaceutical and patient requirements. In the earlier budgets, the Government has announced programs and initiatives to support MSMEs and we expect that to continue. We hope MSMEs, especially in the tier 2-3 cities, are further empowered with capital and technology adoption for them to compete in global markets.”  

Currently, due to the unpredictable weather conditions in Europe and U.S., both belly and freighter capacity is getting impacted, it is also causing massive flight cancellations and delays in cargo movement,” said Satish Lakkaraju, CEO, NexGen Logistics, Garudavega. He added, “Recent fires at the U.S. (Los Angeles) have also created apprehensions in the minds of the Indian exporters and importers. Dollar rates rising to 86 is a good sign for Indian exporters but a cause of concern for importers. In the coming years, the U.S. dollar to Indian rupee exchange will continue to be volatile given the fact that India continues to import crude oil and that is another important aspect from a cargo standpoint. Fuel surcharge is one of the important aspects for arriving at the freight rates. In the express industry, the freight rates change on a weekly to a monthly basis. But, in the cargo industry, the freight rates from the airlines change on monthly basis. So that’s one volatile factor that also determines the prices for the air freight when you may have a base rate on it. 18 per cent GST on air freight is another concern for industry, impacting businesses. The ongoing Russia-Ukraine war is still impacting the global supply chains. To avoid the war zones, the traders are taking longer routes which basically means longer transit times both the air and ocean.”

Sharing his pre-budget expectations, Ravi Jakhar, Chief Strategy Officer, Allcargo Group said, “The logistics industry is poised to play an enabling role in driving economic growth on the back of policy support, technology integration and continued infrastructure development. Hence, in the Union Budget 2025-26, we expect the government to propose robust capex in developing both physical and digital infrastructures to build the pathway for India to become a $5 trillion economy by FY27-28.  For the logistics industry, the continued push by the government for infrastructure development through initiatives like National Infrastructure Pipeline (NIP), PM GatiShakti National Master Plan, etc. will help the industry make significant progress in achieving efficiency. A robust road, rail, air and waterway networks, growing network of multi-modal logistics parks, developing renewable energy infrastructure and strong digital infrastructure will further expand economic activities geographically, drive sustainability and enhance the service delivery capacity and capabilities for the logistics industry. A sustained capex push will also attract private investment in infrastructure development. However, considering long gestation, government has to take lead in logistics infrastructure capex to boost efficiency in supply chains. In addition, earlier E-commerce and now quick commerce’s rapid growth has underscored the necessity for agile and accelerated distribution capabilities. Therefore, the budget should propose fiscal measures to facilitate adoption of new-age technologies such as AI, automation, IoT so that the logistics industry breaks new grounds in efficiency as well as capacity utilisation and deployment.”

Nilratan Shende, Head – CSR, Allcargo Group said, “Skill development in the logistics sector has yet to achieve the desired momentum as there is lack of efforts in the industry to institutionalise skill development initiatives. Given the growing demand of logistics and supply chain services, it’s extremely critical for the industry to develop an institutional framework to generate trained human capital. Allcargo multi-skill development centre launched by Allcargo Group aims to build trained human resource pool equipped with the required sector-specific skills so that the logistics industry can enhance its service delivery capabilities and elevate its growth trajectory. Located at Bokadvira, Uran near JNPT, Navi Mumbai, the centre aims to plug the skill gaps in the industry and strengthen the employability of the youth with industry-specific training. Trainers at the centre are Logistics Skill Council (LSC) TOT (Training of Trainers) certified. It operates under the Pradhan Mantri Kaushal Kendra (PMKK) model and Pradhan Mantri Kaushal Vikas Yojana (PMKVY) flagship scheme of the Union Government’s Ministry of Skill Development and Entrepreneurship (MSDE). The training goal is to help students gain employment as consignment booking assistant, consignment tracking executive, inventory clerk, documentation assistant and warehouse picker/packer, heavy vehicle drivers, etc. The programs aim to improve their skill proficiencies in functional areas like warehousing documentation, booking, loading, unloading, tracking, MIS, picking and packing processes. Under its CSR initiative, Allcargo Group has launched the NIPUN program with centres at Mangalore, Chennai and Dadri and Gautham Budha Nagar in Uttar Pradesh. Nipun is an initiative by Allcargo Logistics and Avashya Foundation aimed at skill development of youth from the drought-affected backward areas of Maharashtra.”