‘UDAN scheme has been impactful in improving regional air cargo connectivity’

Amit Tandon, CEO & Managing Director, Asia Shipping India said, “India has recognised the importance of expanding its domestic air cargo ecosystem beyond just the metro cities, and that is where Tier 2 and Tier 3 cities are starting to play a much bigger role. One of the most impactful initiatives has been the UDAN scheme, which focuses on improving regional air connectivity. Under this, many smaller airports have been upgraded to handle not just passenger traffic but also cargo—especially for sectors like agriculture, pharma, and e-commerce that need faster, more efficient logistics. More airports are being developed under this scheme as greenfield projects. A strong momentum is also seen through the Gati Shakti initiative and the National Logistics Policy, both of which prioritise developing multimodal logistics infrastructure in non-metro regions. These efforts are aimed at linking regional production hubs, like textile clusters, industrial parks and agri zones, to national and international markets via air. The increasing connectivity of the moffusil airports to the gateway airports also improves the efficiency of the export activity for the perishable products. What is promising is the growing investment in infrastructure like modern and well-equipped warehouses, temperature-controlled storage, digital cargo tracking, and bonded warehousing, at regional airports.  Private players are also stepping in, which is helping to accelerate the process. Furthermore, cities like Indore, Lucknow, Coimbatore, and Guwahati and other export centres are already emerging as cargo nodes, and this trend is only going to strengthen with the passage of time. It’s a big step forward for inclusive trade growth and building a truly nationwide logistics network.