New airports to keep up with India’s mobile export surge? To meet $180 billion target by 2030, manufacturers are urging upgraded and expanded cargo handling capacity in airports.
Mobile phone manufacturers are urging Indian airports to expand cargo handling capacities to meet the expected eight-fold increase in device exports, which are projected to reach $180 billion by 2030, according to the India Cellular and Electronics Association (ICEA).
As per reports by the Economic Times, Pankaj Mohindroo, Chairman of ICEA, explained that delays in customs processing are a major bottleneck for the electronics industry. Shipments often take an extra day to clear compared to China, where exports are processed much more efficiently.
India’s electronics sector, which is already the largest contributor to air cargo exports, is facing capacity challenges at existing airports, many of which are operating at full capacity. To keep up with the expected export growth, Mohindroo emphasised the need for both airport expansion and the development of new airports.
In 2023-24, India’s electronics exports totalled $29.1 billion, with mobile phones contributing $15 billion. However, to achieve the government’s target of $500 billion in electronics production by 2030, the air cargo infrastructure needs significant upgrades to handle $180 billion in annual exports.
Delhi, Chennai, and Bengaluru airports currently handle most of India’s mobile phone exports. Still, many airports lack the infrastructure for efficient cargo handling, including space for essential operations like truck parking, unit load device (ULD) assembly, and smooth loading and unloading.
The nature of electronics exports, which are sensitive to weather and require swift delivery, further necessitates dedicated cargo space that ensures safety and ease of transport.
The government is planning to develop 50 new airports over the next five years to boost the airport ecosystem, and the Ministry of Commerce is considering measures to support this growth, such as tax incentives, rationalising fuel prices, and improving infrastructure.
Additionally, the development of new airports, like the Noida International Airport and greenfield airports in Tamil Nadu and Maharashtra, is expected to enhance export capacity.
Leading mobile manufacturers Apple and Samsung are key contributors to India’s mobile phone exports, with Apple’s iPhones largely produced in Tamil Nadu and Samsung operating one of the world’s largest smartphone factories in Noida.
ICEA’s Mohindroo noted that the planned greenfield airport in Parandur, with an investment of Rs 200 billion, would play a crucial role in handling the anticipated export volume. It would feature two runways, a cargo terminal, and direct connectivity to the logistics park at Mappedu.
