The initiative is designed to reduce cargo transit time, handling costs and congestion by allowing secured transshipment cargo to move through dedicated facilities without mandatory re-screening, subject to prescribed security safeguards. Since the pilot began on June 20, around 280 metric tonnes of cargo has been transshipped through Delhi, while aircraft capacity utilisation rose from 75 per cent to nearly 100 per cent. The reform reduced transit time on the Chennai-Delhi-Frankfurt route from about 60 hours to 20 hours.

Naidu said the government aims to triple India’s air cargo volume by 2030 and develop the country into a global air cargo transshipment hub. He highlighted the benefits of faster cargo movement for farmers and exporters, particularly those dealing in perishable agricultural products. The government plans to further expand the network and introduce International-to-International and International-to-Domestic transshipment, strengthening India’s position as a competitive global aviation hub.

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Highlighting key measures, the Minister said the exemption of basic customs duty on parts and components used in civilian and trainer aircraft will address existing manufacturing bottlenecks and improve aircraft availability. He noted that enhanced domestic manufacturing is essential to bridge the connectivity gap, as the country’s growing airport network requires a larger and more affordable aircraft fleet.

Naidu also pointed to rising global interest in India’s aviation sector, citing partnerships such as Embraer’s collaboration with Adani Aerospace and Defence and a proposed tie-up between Russia and Hindustan Aeronautics Limited. The Budget further proposes duty exemptions on raw materials for aircraft MRO in the defence sector and a one-time concessional duty measure to facilitate SEZ sales to the domestic market, aimed at accelerating growth across civil and defence aviation.