India’s 2025 Budget: A Critical Opportunity to Strengthen Air Cargo Infrastructure

As India prepares to unveil its Budget 2025, industry leaders and stakeholders are closely watching for government measures that will enhance the country’s logistics and air cargo capabilities. With the government’s continued emphasis on infrastructure development, experts believe that increased investments in air cargo infrastructure—particularly in Tier 1 and Tier 2 cities—will be essential to reducing logistics costs, improving global trade competitiveness, and supporting the rapid expansion of e-commerce.

R.S. Subramanian, Senior Vice President, South Asia at DHL Express, emphasised the critical role of air cargo in India’s trade landscape by stating that, “Reducing logistics costs by simplifying regulations and making compliances easier remains a key lever for India to become even more competitive globally. The push for infrastructure development across modes is also critical for the economy as well as to support growth expectations.”

The case for increased air cargo investment

India’s logistics costs, currently accounting for 13–14 percent of GDP, are significantly higher than the global average of 8–10 percent, placing a strain on trade competitiveness and overall efficiency. While the government has made strides in improving multimodal logistics through the ‘PM Gati Shakt…