Key growth drivers of air freight forwarding in India

Key growth drivers of air freight forwarding in India
01 Mar, 2023


Air freight forwarders in India have witnessed a surge in demand in the recent times after a continued slowdown during the pandemic. The sector has been through an enormous turbulence, not that it has completely settled down, however, the graph shows a recovery trend and air freight forwarders in India are envisaging the much-awaited growth.

Air freight forwarding in India has been growing steadily in recent times, driven by several key factors:

1. Increasing demand for e-commerce: With the growth of e-commerce in India, there has been a surge in demand for fast and reliable transportation of goods. Air freight is the preferred mode of transport for e-commerce companies due to its speed and efficiency.

2. Growing demand for perishable goods: India is a major producer of perishable goods such as fruits, vegetables, and flowers. Air freight is the most viable option for transporting these goods over long distances, as it ensures their freshness and quality is maintained.

3. Rapidly expanding manufacturing sector: India's manufacturing sector is expanding rapidly, particularly in the areas of pharmaceuticals, textiles, and automobiles. These industries require the timely delivery of goods and raw materials, which can be efficiently transported by air.

4. Government initiatives to promote trade: The Indian government has implemented several initiatives to promote trade and investment, including the Make in India and Digital India campaigns. These initiatives have led to an increase in exports and imports, which has in turn boosted the air freight industry.

5. Infrastructure development: The Indian government has invested heavily in upgrading and modernizing the country's airports and other infrastructure. This has improved the efficiency of air freight operations and made it more attractive for businesses to use air freight as a mode of transport.

6. Digitalization: The sector is harnessing digital advancements and innovation to make the air cargo operations more streamlined. Furthermore, by leveraging technology, the sector is now trying to meet the demands of their customers such as real-time visibility of their shipments. This move is contributing towards making air as the preferred mode of freight.

Way forward - With the announcements in the Union Budget - 2023, the future looks optimistic for the air freight forwarders in India. The sector is bullish to revert to pre-pandemic levels or perform even better in days to come.


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