WEEKLY NEWS


STRATEGIC LEVER AMID SHIFTING GEOPOLITICAL ALLIANCES


BY Ajinkya GURAV


GEOPOLITICAL tensions, volatile maritime routes, and the growing need for supply chain resilience are pushing nations to rethink how they move goods—and India is positioning itself at the centre of this global realignment. In the face of maritime chokepoints and shifting trade alliances, India’s air cargo sector is being


seen as both a beneficiary and a catalyst of change. Discussions at a recent policy convention focused on how India can transform into a strategic air logistics hub by strengthening international partnerships and building robust, corridor-based connectivity frameworks. The consensus was clear: air cargo must evolve from a transactional service into a core pillar of global trade infrastructure, backed by anticipatory policy, digital agility, and diplomatic integration.


India’s geostrategic advantage India’s location offers it a natural advantage in connecting key global markets. Its potential to serve as a bridge between Asia, Europe, and Africa is driving calls for more proactive infrastructure and


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policy planning. “The India-Middle East-Europe Economic Corridor (IMEC) and the International North-South


Transport Corridor (INSTC) are no longer aspirational—they are vital strategic instruments,” said Niraj Ambani, Group President of Reliance Industries Ltd. To leverage this position, Ambani recommended developing air logistics Special Economic Zones


(SEZs) centred around new airports and creating bilateral investment treaties focused on aviation infrastructure. He also called for volume-based incentives tied to high-reliability, time-sensitive export sectors such as electronics, automotive parts, and precision tools. Proposing an “Air Cargo PLI” (Production Linked Incentive), Ambani urged policymakers to mirror


successful manufacturing incentives with logistics rewards. “India must scale up dedicated freighter incentives,” he noted.


Eurasian corridors offer new avenues With traditional maritime routes becoming less reliable due to geopolitical disruptions, alternative trade corridors are drawing renewed interest—especially rail-air integrations across Eurasia. “Trans-Caspian and Trans-Siberian rail-air corridors are seeing renewed relevance,” said Mikhail


Goncharov, Secretary General of the Coordinating Council on Trans-Siberian Transportation (CCTT). To capitalise on these routes, Goncharov stressed the importance of harmonising customs


protocols and digital documentation standards between India and Eurasian trade partners. He pointed to initiatives like IATA’s ONE Record and the World Customs Organization’s SAFE Framework as critical to improving visibility and reducing delays across borders. “Participation in digital standardisation forums... will be crucial,” he said, adding that synchronised digital platforms could unlock vast potential in air cargo transshipment.


The role of charter flexibility in crisis logistics In


volatile trade environments, flexibility becomes a competitive edge. Specialised charter


operations—essential for moving project cargo, humanitarian supplies, and defense equipment— require faster and more secure frameworks. “In a fragmented trade landscape, project cargo, humanitarian relief, and defence equipment require charter


flexibility and guaranteed operational access,” said Denis Bandura, Managing Director of BBC Chartering. Bandura recommended bilateral agreements that enable pre-cleared, on-demand freighter access


to politically sensitive or infrastructure-constrained regions. Airports in Mumbai, Hyderabad, and Bengaluru were identified as ideal hubs, thanks to their robust MRO (Maintenance, Repair and Overhaul) facilities and trained ground-handling capacity. To support this, a dedicated legal and policy framework is needed to streamline charter contracts and expedite customs clearances.


Integrating air cargo into trade policy Experts also highlighted the need for India to embed air cargo policy directly into its broader trade strategy. Dr. Pritam Banerjee, Head of WTO Studies at the Ministry of Commerce, argued that aviation should no longer be treated as an auxiliary component of trade negotiations. “Air cargo must no longer be siloed from mainstream trade negotiations,” he said. Banerjee called for the creation of an Air Cargo Trade Facilitation Cell within the Ministry of


Commerce. Its mandate would include harmonising air services agreements, establishing minimum infrastructure standards for freight terminals, and coordinating reforms with customs and civil aviation authorities. He further suggested that India take a leading role in regional trade groups such as BIMSTEC and


IPEF to drive initiatives like SAF (Sustainable Aviation Fuel) registries, cargo pre-clearance protocols, and digital infrastructure for cargo management.


A policy reset for strategic relevance What emerged from the convention was a unified call for a structural reset in India’s air cargo policy. This would involve establishing formal air corridors, investing in SEZ-linked freight hubs, expediting bilateral charter frameworks, and integrating cargo considerations into trade diplomacy. India’s regulatory responsiveness will be key. In an era where supply chains are more fragmented


and security-conscious, a seamless single-window clearance system was proposed—leveraging blockchain, AI, and real-time compliance tools to facilitate high-risk cargo movement. On the sustainability front, India was urged to fast-track development of a domestic SAF certification


and distribution framework. As carbon intensity becomes a critical metric in international logistics contracts, green corridor capabilities could determine long-term market access.


ACW16 JUNE 2025 www.aircargoweek.com


AIR CARG O WEEK


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