News / Optimistic India sets ambitious growth target for air cargo sector

Expectations of faster growth in India’s economy have generated an upbeat mood for this year’s Air Cargo India (ACI) — a three-day conference that got under way today in Mumbai.

Given the growth expectations, India has set an ambitious target for air cargo expansion – 10 million tonnes by 2030 – a big jump from the current  3.5m tonnes or so.

But at a panel session focusing on this very topic, the speakers agreed India had a significant chance of hitting that target even earlier.

According to them, over the next five years India would have about 50 freighters operating, up from some 16 at present.

“We are highly optimistic about the market outlook,” Ramesh Mamidala, head of cargo at Air India, told The Loadstar. 

The Tata Group-owned carrier last year inked deals to acquire some 470 Airbus and Boeing aircraft, which would, it estimated, quadruple belly cargo capacity at full-scale operations. Indeed, Air India is due to receive six A350s by June. 

The carrier is betting especially on time-sensitive pharmaceuticals and e-commerce shipments to scale-up market share, said Mr Mamidala, adding: “We are looking to triple the size of cargo handling in five years.” 

Air India currently commands some 9% of the Indian airfreight market. In addition, it has diversified into postal service offerings in collaboration with India Post and some of the global agencies, notably the US Postal Service, officials noted. 

Delegates and panel speakers also stressed the need for greater investment in technology to handle the expected volume growth. 

Amar More, CEO of Mumbai-based Kale Logistics Solution, told The Loadstar: “There is a palpable excitement surrounding digitisation and deep tech, and we are thrilled to be at the forefront, showcasing our innovative cargo community systems.” 

Tushar Jani, group chairman of Cargo Service Center, said he believed an “integrated distribution approach” would be critical for the industry. 

Pradhaan Air Express, an all-cargo airline start-up that entered the Indian market with a converted A320 aircraft a year ago, is also cementing its footprint as volume expectations build. CFO Badri Prasad said a second 320 was expected in June and a third in December. 

Pradhaan now offers regular services to Sharjah and Hanoi on a non-schedule basis, Mr Prasad said. 

Developing robust multimodal networks was another key subject under discussion at the event. 

“With greater focus on key sectors like infrastructure development, food processing and pharmaceuticals in the interim budget, India is likely to emerge as an important export hub in the global economy,” said ACI organiser Messe Munchen. 

“This reinforces the need for world-class transport and logistics solutions to keep pace with the expanding volumes of trade along established and newer routes.”