“The economy is in good shape on the tailwinds of healthy macro-economic conditions, corporate earnings and robust domestic demand,” says Shashi Kiran Shetty, Founder and Chairman, Allcargo Group. He adds, “The Government’s third term in office denotes there will be policy continuity in infrastructure development and critical reforms. We expect the new government to continue with the capex momentum and keeping the ease of doing business goals and fiscal consolidation in focus. At a time when the digital economy is opening up new consumption frontiers, global companies are establishing manufacturing bases in India and the nation is staking its claim in the global value chain, a vibrant and globally competitive logistics industry will work as a growth multiplier and trade facilitator. We strongly believe that manufacturing in India by domestic and International companies is a decision taken on the basis an efficient logistics ecosystem that can cater to domestic & cross border demands ,we need to create large global logistics companies that can further the economic growth agenda. Indian logistics companies creating a global footprint is the necessity of a developed nation – Viksit Bharat @ 2047. I am certain the government will take note & enable Indian Logistic companies to power their emergence globally.”

To explore logistics related business opportunities in Gujarat and to focus on leveraging its infrastructure and strategic location to boost India’s logistics and maritime capabilities, The Federation of Freight Forwarders’ Associations in India (FFFAI) organized a meet with Gujarat Maritime Cluster (GMC). A significant highlight of the visit was FFFAI’s official induction as a member of the Gujarat Maritime Cluster. The GMC, the first commercial maritime cluster of its kind in India, offers a synergetic collaboration, providing a one-stop solution for the maritime fraternity. This cluster brings together maritime and shipping industry players, service providers, and relevant government regulatory agencies within the GIFT City ecosystem. Dushyant Mulani, Chairman, FFFAI highlighted that FFFAI’s membership in the GMC is set to strengthen collaborative efforts in the maritime and logistics sectors, enhancing trade efficiency and fostering industry growth. He expressed enthusiasm about the opportunities this partnership will create and emphasized the strategic importance of aligning with leading financial and maritime institutions. “The membership in GMC marks a significant milestone for FFFAI, positioning it at the forefront of India’s maritime innovation and operational excellence. This collaboration is expected to facilitate seamless trade operations and enhance the global competitiveness of Indian freight forwarders,” stated Mulani. Mulani also asserted that FFFAI’s proactive engagement and strategic partnerships with GMC underscore its commitment to advancing India’s logistics industry and contributing to sustainable economic growth. During the discussions at GIFT City, the focus was on leveraging its state-of-the-art infrastructure and strategic location to boost India’s logistics and maritime capabilities. Interactions with Price Waterhouse and Axis Bank provided valuable insights into the financial frameworks and support systems crucial for expanding FFFAI’s initiatives.

C K Govil, President, ACAAI highlights, “Industry needs regulatory support – Simplification of customs and clearance processes to reduce delays. Harmonization of regulations and standards with international norms. Streamlining of licensing and operational permits. Investment in modernizing and expanding airports, cargo terminals, and warehousing facilities. Development of dedicated cargo airports or zones. Enhancing connectivity with multimodal transport networks (road, rail, sea). Encouragement of digitalization and the use of advanced technologies (e.g., blockchain, AI) to improve efficiency. Support for research and development in logistics and supply chain management. Introduction of policies that promote the growth of the air cargo sector. Financial incentives, such as tax breaks or subsidies, to attract investment and innovation. Support for small and medium-sized enterprises (SMEs) in the logistics sector. Policies and incentives to promote the use of green technologies and practices. Support for initiatives that aim to reduce the carbon footprint of air cargo operations. Training programs and educational initiatives to develop a skilled workforce for the logistics and air cargo sectors. Collaboration with educational institutions to ensure curriculum relevance to industry needs. Implementation and enforcement of robust security measures to protect cargo. Ensuring adherence to safety standards to prevent accidents and losses. Bilateral and multilateral agreements to facilitate smoother international cargo movements. Active participation in global forums to influence international logistics policies. Crisis Management – Development of contingency plans to maintain supply chain resilience during crises, such as natural disasters or pandemics. Financial and logistical support for businesses affected by disruptions. By addressing these areas, governments can significantly enhance the efficiency, competitiveness, and sustainability of the air cargo and logistics sectors.”

Chaitaly Mehta, Director, EKF Global Logistics shared her viewpoints and expectations, “Equal playing field infrastructure for all airports, seaports and ICDs. Infrastructure development and maintenance is the need of the hour. Seamless Digital Infrastructure for processing of customs documents ( Hardware upgrade to curtail and improve the frequent downtimes being currently experienced) Solutions for GST related issues and ambiguities pertaining and afflicting the Logistics Industry across all sectors. Creating Indian as a Logistics Hub on lines of Singapore, utilising India’s airports and seaports strategic locations and thus creating new avenues of income generation and jobs generation. To create infrastructure, come up with workable policies to encourage and attract Women to the Operations side of the Logistics Industry across all sectors, sub-sectors and industries within and associated to Logistics including Skills Development, Trainings, After Pregnancy return to work, Hygiene, Safety, Infrastructure , Accessibility, etc.”

Fardeen Malbarwala, Director, Galaxy Freight shared his expectations from the government, “I am looking forward to the government expediting the negotiations for the much-anticipated trade treaties, to catalyze global trade. Owing to the trade treaty signed with the UAE, we are in the process of developing the trade corridor to facilitate the ease of doing business, which will significantly reduce our dependence on the Red Sea. Infrastructure development is another key focus area. I hope the government continues with infrastructure development across India to enable seamless multimodal cargo movement and improve operational efficiency.”

Sharmila H Amin, MD South Asia India, Bertling Logistics says, “India’s air cargo industry has set an ambitious target of handling 10 million tons of air cargo per year by 2030. Currently moving 3.5 million tons, the sector aims to achieve this growth through strong fundamentals, including e-commerce expansion and cross-border trade. To meet the target, improved customs processes and collaboration across the air cargo supply chain are crucial. The government’s support in facilitating efficient logistics infrastructure, prioritizing air cargo in Free Trade Agreements, and allowing flights to any Indian airport will further boost the industry’s growth. Additionally, investments in advanced technologies and increased capacity by Indian airlines contribute to the sector’s optimism.”

M Afzal Malbarwala, Managing Director, Galaxy Freight says, “Government of India, with all stakeholders are always in discussion for improvement in areas in logistics. We as an industry are stressing and need more support from government on: Infrastructure development, like modern airports, upgradation of airports with facilities for handling cargo efficiently. Customs procedures to be simplified for speedy clearance process to reduce delays and costs. The key word today is digitalisation, the technology should be promoted for tracking, managing cargo processes. Investment should be done in training programs to develop skilled workers for logistics and air cargo industry. Should have strategies to ensure the air cargo operations are continuing during crisis, natural disasters.”

Sunil Kohli, Managing Director, Rahat Cargo asserts, “India is now seen as a vibrant country to offer various alternative for the global multinational companies for diversifying their manufacturing base, it’s therefore vital to have an accelerated development of logistics infrastructure coupled with favourable policy formulations which can play a dominant role in helping the country garner a larger share in the global manufacturing value chain and thus we must have fully equipped airports even in satellite towns to facilitate smooth air cargo export activities. The all-important logistics sector too needs a boost to have an overall growth in the related areas. We expect the government to set aside a strategic allocation of resources towards infrastructure. Also required is an emphasize of focus on digitization in the logistics sector to accelerate speed and ease of doing business. The government may also consider tax incentives & infrastructural subsidies and further needs to encourage the domestic manufacturing and prepare the logistics sector for service integration, growth in fulfilment logistics, and multi-modal transportation adoption apart from accelerating the digital infrastructure development to boost logistics efficiency and competitiveness in line with the vision and goals of National Logistics Policy.”

Vipin Vohra, Chairman, Continental Carriers shares, “As we transition to a new government, it is imperative to realize the ambitious target to achieve 10 million metric tons (MMT) of annual cargo throughput by 2030, aligning with India’s aspirations to become a global logistics hub. Central to this vision is the National Logistics Policy (NLP) under the PM Gati Shakti National Master Plan (NMP). One strategic move that the new government should prioritize is implementation of the Air Freight Policy, circulated on 28th October 2014, in letter and spirit ,so as to ensure the development/operationalising of off-airport locations and Air Freight Stations (AFS) in time stipulated manner unlike operationalization of India’s 1st Greenfield Air Freight Station which, even after more than a decade, is yet to take off commercially. To encourage the establishment of off-airport locations and AFS across India, government support in the form of subsidies and incentives will be crucial. Providing subsidies for the construction and operation of off-airport AFS will attract investment from the private sector and expedite the development process. As the new government steps into office, it carries the mantle of driving India towards becoming a global logistics powerhouse. By focusing on the development of off-airport Air Freight Stations, the government can address the space constraints at major airports and pave the way for a robust, efficient, and scalable air cargo infrastructure.”

The intense summer heat exerted its influence on fleet occupancy rates, which dropped to almost 60% as loaders and drivers decided to avoid working during the day in different parts of India, according to Shriram Mobility latest Bulletin. The report adds, High summer temperatures, along with fewer public infrastructure projects, caused a drop in truck rental rates along the major routes. A significant downturn in rental rates was observed in the routes spanning Delhi-Kolkata-Delhi, Delhi-Chennai-Delhi and Mumbai- Kolkata-Mumbai. But as India gets ready for what is expected to be an ample monsoon season, tractor sales significantly increased in May. Sales of agricultural tractors increased by a significant 24% in May 2024, indicating strong demand attributable to pre-monsoon buying. Meanwhile, sales of commercial tractors increased by 20% in the same time frame, exhibiting strong month-over- month growth. Fuel sales and FASTag collections also saw a substantial rise in May 2024 due to the rush of vacationers and election campaigners hitting the road. There was a notable 6% increase in toll revenues from month to month, which suggests that there are more cars on the highways. The amount of fuel consumed surged by 5% month over month to 3.45 million tons, the highest level since May 2023. This increase can be attributed to the heightened presence of wheels on the road due to election campaigns and people venturing out during the holiday season. Similarly, diesel consumption also witnessed a substantial uptick, rising by 6% month-over-month to 8.39 million tonnes.