The Indian air transport industry is striving to grow despite regulatory hurdles

The Indian air cargo sector is targeting a significant increase in annual airport throughput to reach 10 million metric tons by 2030. This ambitious target faces challenges related to stringent security measures and time-consuming processes, prompting industry stakeholders to insist for the government to introduce improved procedures.

In FY2024, Indian airports handled 3.36 million tonnes of cargo, an increase of 7% over the previous year. This includes a 3% increase in domestic cargo and a 9.7% increase in international cargo. However, these numbers are still dwarfed by global leaders such as Hong Kong International Airport, which handled 4.3 million metric tons in 2023.

The main obstacle is security regulations, which require re-inspection of cargo, both domestic and international. This process increases costs and complexity, making Indian airports less competitive. Additionally, customs procedures for international goods carried by many airlines require pre-clearance, which, despite automation, remains time-consuming.

To address these issues, Delhi Airport has set up a Transhipment Center of Excellence (TEC) to streamline processes. The airport also facilitated the transshipment of 8,000 tonnes of cargo from Bangladesh, positioning itself as a key hub in Southeast Asia. Despite these advances, transhipment at Delhi airport accounts for only 10% of the total cargo, indicating significant growth potential.

Air India insists on reviewing its cargo policy to offer more competitive cargo services. A recent delegation visited airports in Germany and Singapore to examine their transhipment practices, and industry leaders are advocating for the introduction of an EU-style safety validation program to eliminate unnecessary re-inspections.

Operational challenges also include limited connecting flights and speed limits for ground equipment. CK Govil, president of the Air Cargo Agents Association of India, stressed the need to efficiently handle transshipment cargo and address urban issues such as traffic and parking. “Shippers must deliver cost-effective logistics in a streamlined environment. Additionally, challenges facing the city such as traffic and parking issues need to be addressed,” he added.

While the Indian air transport industry has set ambitious growth targets, achieving them will require significant regulatory and operational reforms. By addressing current inefficiencies and adopting global best practices, Indian airports can increase their competitiveness and become major players in the international cargo market.