Key Points

Speaking at the Air Cargo Forum India (ACFI) Annual Conclave 2025 in New Delhi on Friday, Srivastava emphasised the need for technological innovation and disruption to drive growth in the sector.

The government is prioritising infrastructure development through initiatives like the Prime Minister's Gati Shakti program, which aims to create a coordinated and efficient infrastructure ecosystem.

During the address, Piyush Srivastava, Senior Economic Advisor, Ministry of Civil Aviation, said, "When we talk about air cargo, there are various dimensions. The infrastructure dimension is something that the government is prioritising both at the coordination level, as is evidenced by the Prime Minister's Gati Shakti program, which seeks to develop the infrastructure in a coordinated manner, without duplication and without disruption."

Enhancing the efficiency of infrastructure creation leads to efficiency in the delivery of services, including cargo, including air cargo.

He linked India's strategic capabilities, such as its response during Operation Sindoor, to economic strength and technological advancement. "We delivered a decisive blow... Thanks to the brave hearts of the armed forces, but it was also backed by the technological progress... and the economic strength we have," he said.

Srivastava highlighted the critical imbalance in the aviation industry, where demand emanates from the Eastern Hemisphere, while services are provided in the Western Hemisphere. He believes this is bound to change, with India positioning itself as a major player.

Srivastava said, "All development or demand emanates from the Eastern Hemisphere, whereas all services are provided, whether it is manufacturing or MRO, in the Western Hemisphere. This is bound to change," he said, adding, "It should be 'Made in India'."

He said the government was developing the entire ecosystem -- including MROs, aircraft leasing and financing -- and even aiming for aircraft manufacturing capacity in India. He clarified, "We are not trying to compete with anybody... We aim to fill the gap that is not currently being served by any of these players."

Referring to recent global disruptions, Srivastava said, "The aviation sector is particularly sensitive to whatever is happening over the globe... the Red Sea Crisis was particularly good for the Indian aviation air cargo industry." But events like Pakistan's airspace closure and the Russia-Ukraine war had added major cost and supply chain burdens.

He cautioned that the global landscape was unlikely to stabilise soon. "The only answer that I can think of is through technology, innovation and disruption."

Srivastava called for disruptive thinking in the sector, citing the potential for sudden spikes in demand and the need for slow and investment-heavy supply. He believes the aviation sector might not be the same 20 years down the line.

He said, "We need to concentrate on disruptive changes. The aviation sector might not be the same 20 years down the line... Maybe we will not fly on ATF at all."

Srivastava emphasised the importance of technology and innovation in driving growth in the air cargo sector. He cited examples of cost-efficient and land-saving innovations, such as a double-decker conveyor belt with built-in scanning.

On Air Freight Stations (AFS), he argued they should complement, not compete with airports, adding, "This is something that can probably be done."

Responding to stakeholder concerns, he said, "There is a lot of surplus capacity available in the commercial flights... We are happy to inform you that this has been done."

Regarding Customs cost recovery, he said the Ministry had addressed the issue for major airports but was exploring solutions for smaller ones.

On the frequent complaint from airlines, Srivastava said, "Aviation is a sector in which everything depends on the airlines. And the airlines are the only ones not making money... Maybe the Customs cost can also be absorbed by the other guys who are making money."

Srivastava expressed optimism about achieving the ambitious 10 million tonne cargo target by 2030, but emphasised the need to be realistic about airport handling capacity versus actual throughput.

He said, "If we achieve that, I will be the happiest person... But we have to be realistic," adding that the country had already exceeded capacity expectations.

He urged industry associations to be more proactive in bilateral air service negotiations and strengthen their research units to come well-prepared.

"These bilaterals can be a make or break agreement... We are usually not so well equipped. This is where the industry association can feed us in," he said.

"Let us not be wanting in our preparedness to respond to this very critical area, which can eventually break our backs," he added.

The ACFI Annual Conclave 2025 brought together industry leaders, policymakers, and think tanks to discuss the future of India's air cargo sector, focusing on themes such as resilience through innovation, sustainable and green cargo infrastructure, express logistics, and e-commerce acceleration.

- ANI