From a peripheral market to a strategic priority, India is now firmly on the radar of global carriers, who increasingly see it as a critical engine of future growth. At the intersection of airlines, freight forwarders and shippers, GSSAs are uniquely positioned to track these shifts in real time. Few have a clearer vantage point like AeroPrime, which works with a diverse portfolio of international carriers entering or expanding in India.
In this conversation, Abhishek Goel, Executive Director and CEO of AeroPrime, shares how airline perceptions of India are evolving, what is driving renewed capacity interest, and why the next phase of growth will be shaped as much by digital transformation and emerging trade lanes as by traditional demand drivers.
What are the key factors influencing international airlines’ decisions to expand cargo capacity into India today, and how has this changed over the last few years?
India is increasingly being viewed as a major economic powerhouse, which has attracted significant interest from international airlines. Over the past few years, particularly after the pandemic, many new airlines have started targeting the Indian market.
Several factors are driving this trend. First, passenger demand is growing rapidly. India’s GDP and per capita income continue to rise, and the expanding middle-class population represents a highly attractive customer segment for airlines. As consumption increases, it creates a ripple effect across industries, including aviation and logistics.
Alongside the growth in passenger traffic, we are also seeing increased interest from cargo operators. Airlines are eager to expand their footprint and test the Indian market because they are highly optimistic about its potential. India’s export volumes and the overall growth trajectory of the market make it an attractive destination.
Another significant shift is the growing confidence airlines have in doing business in India.
Compared to the past, the market is now perceived as more transparent and businessfriendly. Processes such as remittances and fund repatriation, which were once major challenges for foreign carriers, have become much simpler due to government initiatives and improvements in the regulatory framework.
Infrastructure upgrades have also played an important role. Airports are investing heavily in specialised cargo facilities, particularly for temperature-sensitive and pharmaceutical shipments. All these developments have contributed to making India a more compelling market for international airlines.
Could you share examples of airlines that have recently expanded or tested the Indian market?
There are several examples. One is My Freighter, with whom we initially handled ad hoc freighter operations. Over the past few months, however, those services have evolved into regular freighter operations due to increased demand. Geopolitical developments and changing trade patterns have also contributed to the growth of certain markets.
We are also seeing greater activity from freighter operators based in Central Asia, making that region an increasingly important cargo corridor.
Another example is TAP Air Portugal, which we recently introduced to the market. We have observed strong demand growth for South American destinations, as shippers continue to explore alternative routes and new ways to reach key international markets.
While perceptions of India are improving, what bottlenecks or challenges do foreign airlines still encounter when entering the Indian air cargo market? What lessons can the industry learn from both successful and unsuccessful market entries?
I wouldn’t necessarily describe them as misconceptions; rather, there are still certain bottlenecks that need to be addressed.
The first is transparency. Some airlines continue to perceive India as a relatively traditional market with grey areas in business practices. As an industry, we need to continue improving transparency and strengthening confidence among international carriers.
The second area relates to regulatory processes, particularly flight approvals and landing permissions. However, this situation has improved significantly. The DGCA’s online systems have made the process far more streamlined, transparent and efficient than before. Airlines entering India today will find a much more supportive regulatory environment.
The third factor is financial processes, particularly remittances and fund transfers. While a framework exists and functions effectively, airlines need to understand and follow the established procedures. Once done correctly, there are generally no major issues.
Finally, infrastructure remains a critical consideration. The pace of infrastructure development in India over the past few years has been remarkable, with facilities increasingly aligned with global and IATA standards. While some gaps still exist, these are being addressed rapidly. We expect to see further airport expansion, enhanced cargo facilities and increased airline participation in the coming years.
This is an abridged version of the interview published in the July edition of the Logistics Insider Magazine. To read the complete interaction, click here.
