A senior Singapore-based freight and logistics executive highlights the immense air cargo potential between India and China, driven by strong interest from Chinese exporters in the Indian market. However, the trade remains largely one-sided, with Indian airlines often returning to China with empty cargo holds.
“You can’t change much because Indian exporters aren’t selling to Chinese, but the Chinese love Indians—they sell everything to India,” said Anis Ahmed, Founder and Group CEO of MGH Group, in an interview. The company represents ocean carriers and airlines as general sales agents and provides a wide range of logistics support and solutions.
Anis Ahmed explained that the air freight shipments into India are managed by the group’s activities in China, where MGH has an alliance with IndiGo, the biggest airline in India.
In order to assist our shipments into India, we are active in China. There isn’t enough room available for air freight to support your online business (cargo from China to India). India doesn’t send much to China, so when the aircraft return, they are empty, “explained Ahmed.
Chinese freight carriers like SF Express and YTO Cargo carriers handle the majority of freight flight operations from China to India, although IndiGo, the biggest carrier in India, just began offering freighter service between Kolkata and Ezhou in the Hubei Province of China. For cargo freight from China to India, MGH uses both IndiGo and Chinese freighter companies.
“Indigo is our gold standard. We ought to be able to go out and join that network wherever we go. We are linking service belts for agriculture and industry that need quicker conveyance, “added Ahmed.
The bilateral relationship between India and China has been tense since deadly skirmishes between their armies began along the Line of Actual Control in May 2020. India’s Minister for External Affairs, Subrahmanyam Jaishankar, has consistently stated that normalizing relations with China is impossible without peace and tranquility at the border.
The CEO, who is currently located in Singapore but was originally from Bangladesh, explained that in order for India to grow into a significant hub of the global supply chain network, big players in the air freight industry will need to emerge, particularly in the area of cargo transport to and from India.
When I spoke with the honorable secretary of aviation, I told him, “Sir, you have to protect the Indian supply chain.” “Made in India is only possible if its supply chain is likewise manufactured in India,” Ahmed stated.
“I believe Indian carriers should be given a gestation period to generate profits, invest in their fleets, and then compete on an equal footing. Currently, it’s not a level playing field,” said Ahmed, pointing out the significant share that foreign carriers hold in transporting air cargo to and from India.
Ahmed emphasized that, aside from IndiGo, the future prospects for business with Air India, Akasa Air, and SpiceJet guarantee robust revenue from operations in India.
“Yes, we collaborate with SpiceJet. As one of the first parties to take over and essentially handle the cargo business for them, we have been there since 2015. We serve all of India, anywhere they currently fly, and we are their worldwide go-to-market for all of those destinations,” he continued.
Ahmed emphasized that, along with IndiGo, the commercial potential with Air India, Akasa Air, and SpiceJet guarantees robust business from operations in India in the future.
“We do work with SpiceJet. We were among the first to take over the cargo company and essentially operate it for them, and we have been there since 2015. We cover all of India, anywhere they go now, and we are their global first choice for all of the places they now fly,” he continued.
Currently, the aviation industry accounts for 22% of sales. We want to double it, please. We are not even scratching the surface of this billion-dollar industry today. In the next three to five years, we anticipate an eight- to nine-fold growth in this business,” Ahmed stated.
The MGH Group is placing a significant wager on India’s diverse worldwide operations, given the country’s rapid airport infrastructure development, which would enable improved air freight operations into and out of the nation.
“We align our goals with the Indian government’s vision,” said Ahmed. “When the government announced plans to build airports under the UDAN scheme, we adopted that as a blueprint for the future of Indian aviation, whether for passenger or cargo transport.”
