Eyeing surge in exports, India’s phone industry asks airports to shore up cargo capacity

The Indian mobile phone industry as called on airports in the country to enhance their cargo handling capacity to meet a potential surge in device exports, the Press Trust of India (PTI) reported.

The India Cellular and Electronics Association (ICEA) estimates that mobile device exports could reach $180 billion annually by 2030, an eightfold increase from current levels.

Delays in shipment processing is a major challenge. “In China, the factory-to-export takeoff happens on Day 1, but in India, it takes until Day 2. This gap becomes stark when comparing China’s $959 billion electronics output to India’s $29 billion in 2023,” ICEA chairman Pankaj Mohindroo said.

Electronics is India’s top air cargo export, and ranks third overall behind engineering and petroleum products.

“Airports need infrastructural upgrades to handle the potential export growth,” Mohindroo said, adding that, “currently, airports are operating near full capacity.”

“By 2030, electronics could become India’s top two exports, accounting for $180-200 billion annually, requiring significant expansions in airport capacity,” he said.

At present, Delhi handles 55% of mobile phone exports, followed by Chennai (30%) and Bengaluru (10%).

Mohindroo said lack of adequate facilities at airports for cargo operations, is affecting handling of electronics, which are sensitive to heat, water, and other conditions.

“Dedicated spaces ensuring safety, security, and speed are critical,” he said.

Moreover, customs delays is also a significant challenge, with brokers often working in an unstructured manner, which slows down shipments.

To address these challenges, the government is planning to establish 50 new airports in the next five years, PTI reported. Recent developments include greenfield projects like Noida International Airport and planned airports in Tamil Nadu and Maharashtra.

“The greenfield airport at Parandur will have a cargo terminal and direct connectivity to the logistics park at Mappedu,” Mohindroo said, adding that this ₹20,000 crore project will boost export capabilities.

Apple and Samsung lead India’s mobile phone exports. Apple manufactures iPhones in Tamil Nadu, while Samsung operates a major facility in Noida.

The push for improved airport infrastructure aligns with India’s ambitions to scale electronics production to $500 billion by 2030.