India’s Air Cargo Growth: Tier-2/3 Cities Key

India’s strategic ambition to establish itself as a global logistics and transshipment hub critically depends on the structural enhancement of its air cargo infrastructure, particularly within Tier-2 and Tier-3 cities. Industry leaders, including those from the Air Cargo Forum India (ACFI), emphasize that while major airport cargo facilities have seen progress, future growth is inextricably linked to robust regional connectivity, alongside crucial policy reforms and streamlined business processes.

Sanjiv Edward, President of ACFI, highlighted that the existing infrastructure, while improved, requires a deeper network effect across smaller cities. He advocated for a re-evaluation of the country’s Open Sky Policy for freighters, suggesting that increased cargo capacity through such a measure would directly bolster Indian manufacturers and exporters. Furthermore, Edward proposed a dedicated “Cargo UDAN” scheme, a policy mechanism designed to extend air freight access to currently underserved regions, mirroring the successful passenger aviation initiative.

Ramesh Mamidala, ACFI Vice President, acknowledged the global headwinds facing the air cargo sector, citing geopolitical conflicts, elevated fuel prices, and airspace restrictions. Yet, he pointed to new opportunities emerging from these very challenges. Mamidala underscored the transformative potential of recent amendments to India’s transshipment screening policy, describing them as a vital structural step towards positioning Indian airports as international cargo gateways, with initial pilot programs demonstrating positive outcomes. He anticipates rapid expansion in Tier-2 and Tier-3 airports over the next five years, indicating a shift towards a more distributed logistics network.

The strategic importance of these developments is further amplified by India’s burgeoning international trade relationships. Kerstin Peckl, Deputy Commercial Counsellor at Advantage Austria India, noted consistent growth in bilateral trade between India and Austria, projecting an accelerated trajectory with the forthcoming India-European Union free trade agreement. Such agreements will naturally drive increased demand for efficient air cargo services, creating a direct feedback loop with infrastructure development.

These discussions precede the ACFI World Conclave 2026, scheduled for August 12-13 in New Delhi. The conclave aims to forge a comprehensive roadmap for the sector, targeting an ambitious goal of 10 million metric tonnes of air cargo for India. This quantitative target underscores the scale of the structural transformation envisioned, moving beyond incremental improvements to a systemic overhaul of India’s air logistics capabilities. Mamidala expects this year’s event to be the largest yet, drawing an estimated 800-900 delegates from both domestic and international spheres, signifying broad industry commitment to this structural shift.