Amid mounting global pressure on the airfreight industry to modernize, harmonize, and decarbonize, a newly signed memorandum of understanding (MoU) between Air Cargo Forum India (ACFI) and the International Air Cargo Association (TIACA) represents a significant step toward deeper integration of emerging markets—particularly India—into the evolving global air cargo ecosystem.
Signed during the ACFI Annual Conclave 2025 by Sanjiv Edward, President of ACFI, and Glyn Hughes, Director General of TIACA, the agreement aims to drive policy alignment, digital transformation, and sustainability across India’s airfreight value chain. More than symbolic, the MoU establishes a formalized framework for cooperation amid rising regulatory complexity and growing geopolitical headwinds.
An Industry at a Crossroads: Policy Urgency Meets Competitive Convergence
The global airfreight industry—valued at approximately USD 150 billion in 2024—faces systemic challenges, including:
As regulatory bodies such as the International Civil Aviation Organization (ICAO) and the European Commission push toward full paperless, emission-accountable logistics, the ACFI–TIACA pact arrives at a strategically vital juncture.
India’s air cargo sector, currently processing an estimated 3.3 million tonnes annually, is projected by IATA to double to over 6 million tonnes by 2030. However, this growth potential is threatened by legacy systems, procedural inefficiencies, and insufficient alignment with global trade, technology, and ESG (Environmental, Social, and Governance) standards.
“Global cargo does not stop at borders—it flows through harmonised systems. Our collaboration with ACFI is aimed at ensuring India is part of that harmonised flow,” stated Glyn Hughes, Director General, TIACA.
Policy Focus Areas: Digitalisation, ESG Compliance, and Trade Facilitation
Digital Transformation
Under ICAO’s target for 100% digital cargo documentation by 2035, and IATA’s One Record initiative promoting data standardization, India faces a steep climb—currently, fewer than 10% of cargo shipments utilize fully digitized processes (FICCI–Deloitte).
The MoU proposes:
Sustainability and ESG Integration
With international sustainability mandates tightening, including the EU’s Carbon Border Adjustment Mechanism (CBAM) and Corporate Sustainability Reporting Directive (CSRD), ESG metrics are fast becoming prerequisites for global trade participation.
Through this MoU:
Indian operators will gain access to TIACA’s BlueSky Programme, a voluntary global ESG benchmarking tool
Initiatives will support carbon footprint tracking, emissions audits, and inclusive workforce development
“This partnership enables Indian cargo companies to not just meet but lead in adopting ESG metrics that are becoming prerequisites in global trade lanes,” said an ACFI spokesperson.
Customs and Trade Facilitation
India’s cargo clearance processes remain hampered by:
The MoU outlines the formation of bilateral task forces to:
These reforms are aligned with India’s active trade frameworks, including the India–EU Trade and Investment Agreement and the India–UAE Comprehensive Economic Partnership Agreement (CEPA).
Institutional Mechanisms and Implementation Framework
Unlike symbolic partnerships, the ACFI–TIACA MoU incorporates structured institutional mechanisms, including:
While not legally binding, the agreement is expected to unlock access to new international air trade corridors—particularly for Indian SMEs and airport developers aiming to integrate into G7 and EU-centric supply chains.
“India cannot scale its cargo footprint in isolation. This MoU helps us align with the best, learn from the best, and build capacity that can stand the test of global scrutiny,” commented a senior executive from a leading Indian cargo terminal operator.
Geopolitical Relevance and Global South Diplomacy
This partnership also reflects India’s growing ambition to lead in logistics diplomacy, leveraging its Indo-Pacific presence and G20 policy momentum. It reinforces the country's commitment to influencing—rather than merely following—rule-setting bodies in global aviation and logistics.
The MoU aligns with India’s 2023 G20 Presidency goals and its involvement in the ICAO Global Aviation Facilitation Summit, where digital customs and sustainable logistics were prioritized.
Viewed through this lens, the MoU represents not just a national logistics upgrade but a diplomatic instrument enhancing India’s voice in shaping global freight policy for the Global South.
Execution Will Determine Impact
While the ACFI–TIACA MoU is a promising milestone, its success will depend on:
Past efforts have faltered due to fragmented implementation and limited cross-ministerial coordination. However, India’s National Logistics Policy (NLP) and the upcoming Air Cargo Policy revisions offer a favorable policy environment for turning strategic intent into tangible reform.
“In today’s air cargo economy, collaboration is not optional—it’s existential,” summarized ACFI President Sanjiv Edward.
Source: https://aircargoweek.com/pact-underscores-strategic-global-integration-in-airfreight/
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