Civil Aviation Minister promises air cargo reforms with a three-point agenda

Union Civil Aviation Minister Kinjarapu Rammohan Naidu today outlined a three-pronged strategy to accelerate India's air cargo growth, announced impending changes to the country's Air Freight Station (AFS) policy, and called for stronger multimodal integration to position India as a global logistics hub.

Addressing delegates at the India International Cargo Show (IICS) 2026 at Bharat Mandapam, Delhi, the minister said air cargo would receive greater policy attention from his ministry and promised extensive stakeholder consultations to remove bottlenecks.

Three focus areas identified
The minister stated that the government would focus on increasing cargo volumes, reducing dwell time, and lowering costs.

Making the government's priorities clear, Naidu said, "Increasing the air cargo volumes in the country will be the number one priority for us."

On operational efficiency, he added, "The whole point of sending a product through air cargo is the advantage of time. So, cutting down the dwell time is going to be another priority for us."

The third objective, he said, is making air cargo more affordable.

"The third priority is to cut down the costs that are associated with that. There is an opportunity for us to reduce the cost even more, make it more viable for the smaller players to also come into this network and proudly utilise the air cargo ecosystem."

Naidu said India possesses the demand, volumes and market needed for rapid air cargo growth.

"How do you make it more convenient for them, so that they can have access to the network?"

Air Freight Station policy changes
In a significant policy announcement, the minister revealed that the government is working on modifications to the Air Freight Station policy, following a review that found the existing framework has not delivered the expected results.

"We have the air freight station policy. I was surprised that we have had the policy for quite some time, but it has not clicked somehow."

He indicated that stakeholder consultations are underway to redesign the framework.

"More consultation is required, more active collaboration is required. So we are trying to bring in some changes in that air freight station policy, which is also going to be a big boost to our air cargo."

The minister said India would study global best practices and adapt them for domestic requirements.

"There are multiple different models. One is the global models that we can learn from, Indianize them, make them more convenient for the Indian market and the Indian ecosystem, Indian MSMEs."

India must become a transshipment hub
Naidu said India's geographic location provides a major opportunity to emerge as an international air cargo transshipment centre.

"Because of the geographical location, we can create a system of transshipment where we not only cater for our domestic consumption but also international air cargo."

He added, “How do we take that opportunity and create our systems, align them with the global standards, so other countries use our country as a destination, as a transit destination? So that is also going to be one focus area for us."

Multimodal logistics key to future growth
The minister repeatedly stressed that logistics development cannot happen in silos and called for deeper integration across transport modes.

"When you talk about logistics, it should not be very specific to air cargo or road cargo or port cargo, but everything has to be synonymous. It should be like playing a symphony."

He elaborated, "Right from the last mile road connectivity to the ocean to air. How do you integrate all these systems?"

Naidu said the ministry plans two separate consultation mechanisms—one dedicated to air cargo stakeholders and another bringing together stakeholders from different logistics modes.

Rail freight transformation highlighted
As an example of successful logistics reforms, Naidu cited improvements achieved through the Eastern Dedicated Freight Corridor.

"The Eastern Dedicated Freight Corridor has reduced wagon turnaround times from 15-16 days to two to three days."

He also highlighted reductions in transit times. "It has also cut the transit times from 60 hours to around 35 to 38 hours."

Logistics central to India's economic ambitions

The minister linked logistics performance directly to India's economic growth and manufacturing ambitions.

"The road to becoming a global manufacturing hub passes through becoming a global logistics hub."

He emphasised that logistics unlocks the value created by manufacturing.

"Factories manufacture the goods, but logistics is the concept which makes those goods reach the markets."

Calling logistics the backbone of India's economic ambitions, Naidu pointed out, "The logistics system, which right now is the third largest job provider in the country, we need to strengthen that sector. We need to make it stronger, globally competitive."

And added, "If you want to help those local MSMEs, if you want to help the local farmers, if you want to help our businesses to stand at the global stage. The nerve centre is the logistic system."