UDAN Scheme to Drive Cargo Growth | Jaideep Mirchandani

1. UDAN Scheme Can Be A Major Stimulator For India’s Air Cargo Growth, Says Jaideep Mirchandani www.skyone.aero

2. The International Air Transport Association (IATA), in releasing the data for April 2025 global air cargo markets, noted that seasonal demand for fashion and consumer goods, combined with lower jet fuel prices, has boosted air cargo. Air cargo demand grew strongly in April, with volumes increasing by 5.8% year-over-year, demonstrating a solid performance. Later, IATA Director General Willie Walsh, during the IATA Annual General Meeting and World Air Transport Summit in New Delhi in May, specifically mentioned the growth of the Indian domestic market, which is expanding at a rate of 10 per cent. The tremendous growth of India’s domestic aviation sector can also propel the country’s air cargo sector further, experts point out. Meanwhile, manufacturing major Boeing estimates that the rapid growth of the e-commerce sector, along with domestic aviation expansion, is expected to boost India’s domestic air cargo industry with a growth forecast of 6.9 per cent per year over the next two decades.

3. With its speed, reliability, and ability to connect even remote areas, air cargo offers businesses the opportunity to expand both domestically and internationally. “We must understand that the concept of airports being mere transit points has changed; they are now also integrated cargo hubs. This change should be adopted in India’s aviation sector too, to achieve its ambitious target of 10 million metric tonnes of air cargo annually by 2030, up from the present 3.5 million tonnes,” says Jaideep Mirchandani, Group Chairman of Sky One. He necessary to accommodate temperature-controlled shipments for pharmaceuticals and provide cold chain support. Better infrastructure is also required for express cargo and Additionally, there is now an increasing demand for faster, automated clearance processes and tailored solutions for each business sector. states that state-of-the-art facilities are high-value goods.

4. According to Mr Mirchandani, in this scenario, regional connectivity schemes like UDAN have the potential to become a game changer not only for domestic air travel but also for cargo movement within the country. UDAN is likely to play a key role in creating a decentralised aviation logistics network. Along with modernising existing domestic airports and constructing new ones, equal importance can be given to building modern cargo terminals at the regional level. Airlines, logistics companies, and shippers can leverage UDAN-enabled routes, which can also act as connection points to major airports in the country,” he adds.

5. Meanwhile, the UDAN scheme, launched in October 2016, according to official data, has so far helped operationalise 625 routes, connecting 90 airports (including two water aerodromes and 15 heliports) across India. It states that more than 1.49 crore passengers have benefited from affordable regional air travel under UDAN, along with strengthened regional tourism, improved access, and trade-catalysing economic growth in Tier 2 and Tier 3 cities. Earlier this year, the government revamped version of UDAN, aiming to add 120 new destinations additional four crore people. healthcare announced a and benefit an

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