India to play crucial role in shaping air cargo movement: Sky One FZE Chairman

Air cargo movement: India is set to play a pivotal role in shaping the movement of air cargo, said Jaideep Mirchandani, Chairman of global aviation conglomerate Sky One FZE in an interview with Republic. Asserting that India’s air freight market is estimated to stand at $13.08 billion (Rs 1.09 lakh crore) in 2023, he said that by 2028, it is expected to reach $17.22 billion (Rs 1.43 lakh crore) at a CAGR of 5.65 per cent. 

“With the country's rapidly growing economy and increasing trade activities, India is poised to become a crucial player in the global logistics landscape. Key regions that are expected to drive this growth include major industrial hubs such as Mumbai, Delhi-NCR, Chennai, and Bengaluru, as well as emerging logistics centers in Gujarat and Hyderabad,” he said. 

Mirchandani also stated that in the Asia-Pacific region, Sky One FZE is observing significant trends that can impact cargo volume growth. “The rise of e-commerce, especially in countries like India and China, is driving a notable surge in demand for air cargo transportation. According to IATA, global e-commerce is predicted to exceed $7.4 trillion by 2025, indicating the immense potential for cargo movement in the region. Additionally, the development of multimodal logistics hubs and advancements in technology are improving supply chain efficiency and promoting seamless cargo movement in the region,” he said.

Global trade dynamics and air cargo movement in India

According to Mirchandani, India's air cargo movement is greatly influenced by global trade dynamics, rapid technological advancements, and evolving consumer behaviors. As international trade patterns evolve, India's strategic geographical location places it in a prime position to serve as a transit point for goods moving between Asia, Europe, and Africa, he asserted. “According to reports, India substituted China as the emerging market with maximum potential to grow and increase revenue, which reflects the country's strong growth in the economy which will drive demand and consequently air cargo movement. Technological advancements are driving efficiency gains in cargo handling, tracking, and documentation, while changing consumer behaviors are shaping the demand for specialised and express cargo services,” he said.

National Logistics Policy

The focus on improving airport facilities and connectivity will enhance India's capacity to handle export and import cargo, making it more competitive in the global trade landscape, he opined. “The National Logistics Policy emphasises the development of multimodal logistics hubs enabling smoother cargo movement across different regions. This integrated approach will enhance connectivity, reduce transit times, and improve overall logistics efficiency,” he said, adding that the policy's focus on infrastructure development, including dedicated freight corridors and Multimodal Logistic Parks (MMLPs), will enhance the transportation network and facilitate seamless cargo operations. “Forty air cargo terminals have been constructed and 30 airports have been provided cold-storage facilities across India for promoting export. This is surely going to boost the demand and efficiency of air cargo in the region,” he explained.