To accommodate the expected eightfold increase in smartphone exports-which is estimated to cross $180 billion by 2030-the Indian mobile phone industry has requested that the government enhance air cargo handling facilities. The plea was issued by the India Cellular and Electronics Association, stressing the need for expansion since existing airports are almost at saturation point. A major hurdle for the electronics industry is the turnaround time at customs, which is delaying the time it takes to process shipments, said ICEA Chairman Pankaj Mohindroo. “The factory-to-export process starts on Day 1 in China, but it doesn’t start until Day 2 in India.” Given the enormous disparity in export volumes between the two nations, this gap is very worrisome,” Mohindroo stated, noting that in 2023, China’s electronics exports will amount to $959 billion, more than 30 times India’s $29 billion. India’s air cargo exports are already dominated by electronics, which come in second overall, behind petroleum and technical items.
Since present airport infrastructure operates at almost 100% capacity, ICEA highlights the fact that major improvements are needed to achieve the aggressive export plan. According to Mohindroo, building new airports and expanding existing airports are necessary for India to be able to absorb the growth in exports. Mobile phones comprised $15 billion of India’s $29.1 billion in electronics exports during the 2023–24 fiscal year.
Mohindroo notes that a huge increase in the country’s air freight capacity is needed if the electronics industry target of $500 billion is going to be achieved by 2030. Electronics exports would surpass other exports in volume and prove to be a significant player in the air cargo market of India due to its surge. Currently, mobile phone exports, account for 55% of India’s exports at the airport in Delhi, with the remaining 30% and 10% at the airports in Madras and Bangalore respectively. But Mohindroo stated that most the airports are lacking room for docking, truck parking, and loading/unloading for integral cargo handling activities, which makes it more complex in the logistics of electronics that are sensitive in both weather and temperature. The ad hoc nature of brokers’ customs procedures also worsens delays. ICEA requires clearance timeframes to become faster and processes better organised to deal with these problems.
The Indian government’s bid to construct 50 new airports over the next five years is an important factor that boosts air cargo capacity. The ministry of trade has recently presented tax breaks, cheaper aircraft fuel costs, and the building of infrastructure to help air cargo. To boost exports, Mohindroo also mentioned the construction of new airports, such as the Noida International Airport and the greenfield airports in Tamil Nadu and Maharashtra.
Notably, two of India’s leading exporters of mobile phones are Apple and Samsung, both of which have significant production facilities in Tamil Nadu and Noida. According to ICEA, enhancing infrastructure will help make it easier for exports, with an ambitious plan for Rs 20,000 crore greenfield airport at Parandur, Tamil Nadu. The new airport is envisaged to accommodate 10 crore passengers every year and is supposed to have a cargo terminal too. These infrastructural up-gradations are necessary to ensure growth in the next ten years because India is an emerging global hub for mobile phone exports.
