India needs stronger Tier-2, Tier-3 air cargo network to drive growth: ACFI

New Delhi [India], July 10 (ANI): India's air cargo industry needs stronger infrastructure in Tier-2 and Tier-3 cities, continued policy reforms and easier business processes to position the country as a global logistics and transshipment hub, industry leaders said on Friday.
Speaking to ANI on the sidelines of the Air Cargo Forum India (ACFI) World Conclave 2026 Curtain Raiser, ACFI President Sanjiv Edward said India has made significant progress in developing airport cargo infrastructure, but the next phase of growth will depend on improving regional connectivity.
"We need to see how do we build Tier-2 and Tier-3 infrastructure. We also need to have very good connectivity," Edward said.
He also called for revisiting the country's Open Sky Policy for freighters to increase cargo capacity.
"We need to revisit our Open Sky Policy for air cargo... that gives capacity back to the Indian market, especially if you've got a freighter flying into Tier-2 and Tier-3 cities. Who benefits? The Indian manufacturer, the Indian exporter," he said.
Edward further suggested introducing a dedicated "Cargo UDAN" scheme to improve air freight access in underserved regions.
ACFI Vice President Ramesh Mamidala said the global air cargo industry continues to grapple with geopolitical conflicts, high fuel prices and airspace restrictions, but these challenges have also opened new opportunities.
"The whole thing that happened over the last year taught us a lot of new things as to how we need to adapt as an industry... the challenges actually gave new opportunities to all of us," he told ANI.
He said recent changes to India's transhipment screening policy are an important step towards making Indian airports international cargo hubs.
"We always wanted to develop Indian airports as international hubs... the transshipment double-screening policy was a hindrance. Luckily, that policy was changed recently, and the pilot has been very successful," Mamidala said.
Highlighting the importance of regional airports, he added, "I definitely see in the next five years very accelerating growth in Tier-2, Tier-3 airports."
Kerstin Peckl, Deputy Commercial Counsellor at Advantage Austria India also attended the event and said bilateral trade between India and Austria has been growing steadily and could receive another boost once the India-European Union free trade agreement comes into force.
"Every year we had a new trade record... with the new free trade agreement... it will have another boost in the relationship between both economies," she said.
The industry leaders were speaking ahead of the ACFI World Conclave 2026, to be held on August 12-13 in New Delhi. Edward said the conclave will focus on achieving India's aspirational target of 10 million metric tonnes of air cargo by bringing together policymakers and industry leaders to prepare a roadmap for the sector.
Mamidala said this year's conclave is expected to be the largest edition yet, with participation from 800-900 delegates and representatives from across India and overseas. (ANI)