As global trade undergoes a structural shift towards digital-first, time-sensitive, and data-driven supply chains, India’s airfreight sector faces a pivotal challenge: can it digitise fast enough to remain relevant in the new world economy?
With express airfreight volumes projected to grow at 15 to 18 percent annually and cross-border e-commerce expected to surpass US$140 billion by 2030, the stakes are high.
Express precision
Alok Kumar Singh, Lead Logistics at Tata Semiconductor, spotlighted the pressures in high-value manufacturing. “Semiconductors rely on just-in-time inventory; delays of even 30 minutes can result in cascading production losses,” Singh warned. He noted that the company’s airfreight usage has surged by 60 percent in the past year alone due to its dependence on air corridors for photomasks, wafers, and temperature-sensitive chemicals.
Singh advocated for AI-driven forecasting tools to improve lead-time predictability and optimise cargo readiness. “We need predictive logistics, not just reactive movement,” he said, urging industry and government to fund tech infrastructure that supports advanced manufacturing sectors.
Data interoperability and infrastructure gaps
Parvinder Singh, Managing Director at Hans Infomatic, underscored the inefficiencies of India’s fragmented cargo ecosystem. “Legacy systems are linear and opaque, but modern commerce demands API-integrated, interoperable platforms. Without shared visibility, we lose precious hours,” he said.
According to Singh, platforms enabling e-AWBs, live customs dashboards, and cargo community systems can reduce procedural redundancy by up to 30 percent. However, scale adoption remains low. “Unless regulators make these digital tools mandatory, uptake will remain uneven,” he cautioned.
Learning from Regional Leaders: Benchmarking Against Asia-Pacific and EU Corridors
Rajesh Menon, Regional Head of Cargo (South East Asia, Middle East, and Africa) at Cathay Cargo, offered a comparative lens. “India has strong macro drivers—demand, demographics, and policy will—but operational consistency is lacking. While express cargo clearance at Hong Kong Airport averages under four hours, Indian metro airports still clock 12 to 18 hours,” he explained.
These inefficiencies put India at odds with global trade facilitation benchmarks under the WTO’s Trade Facilitation Agreement (TFA). Menon emphasised that India’s competitiveness depends on harmonised customs, single-window clearances, and faster transshipment protocols.
Platform economics
Joyce Tai, Executive Vice President at Freightos, stressed the role of digital freight marketplaces. “Transparency breeds velocity. If a shipper knows prices, availability, and compliance status in real time, it unlocks faster routing and cost savings,” she said.
Freightos data shows that digital bookings in the Asia-Pacific region rose by 85 percent in 2024, with India experiencing the highest growth after Vietnam. However, Tai warned that data interoperability must not come at the expense of security. “Data sovereignty frameworks are needed to balance trade enablement with national oversight,” she stated.
Digitisation is now existential
Ravinder Kumar Panthri, Managing Director of Sales at FedEx, painted a picture of customer expectations that have outpaced existing infrastructure. “Customers no longer demand just speed, but complete transparency and predictability. Exception management and automated rerouting are baseline expectations,” he said.
FedEx has invested in AI-led route planning and IoT-enabled packaging that monitors shipment conditions in real time. The company has seen a 23 percent year-on-year rise in express exports from India to Southeast Asia, driven largely by small businesses leveraging e-commerce platforms.
“The future isn’t just tech-enabled; it’s tech-dependent,” Panthri said. He urged the government to include digital logistics as a core component of national industrial and trade policy.
