Electronics Soars as India's Top Air Cargo Export, Ranks Third Overall

India Manufacturing Review Team
Monday, 25 November 2024

In terms of air cargo exports, electronics is currently the top export category in India, ranking third overall behind engineering and petrol. ICEA reported that the cumulative value of electronic exports during the financial year 2023-24 was USD 29.1 billion, with mobile phones accounting for USD 15 billion.

The Mobile phone industry is urging Indian airports to increase their cargo handling capacity to match the expected growth in device exports to $180 billion by 2030, according to ICEA. Chairman Pankaj Mohindroo of the India Cellular and Electronics Association (ICEA) stated to PTI that delays in processing shipments are primarily caused by the extended turnaround time at customs, posing a significant challenge for the electronics industry.

"To achieve the USD 500 billion of electronics production by 2030 requires airport capacities to increase parallelly to handle USD 180 bn of exports, the vast majority on an annual basis which would be 6 times higher than the current exports. By 2030, electronics will not only be India's top 2 exports (at the rate of USD 180-200 billion per year), but also significantly larger in terms of air cargo as compared to any other export from India," Mohindroo said.

Currently, Delhi manages 55% of India's total mobile phone exports, Madras Airport handles 30%, and Bangalore airport processes 10%. Mohindroo stated that numerous airports do not have sufficient space for necessary cargo activities like docking, ULD assembly, truck parking, and seamless goods handling.

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