Air Cargo Industry Pushes for Restoration of Double Dip Facility to Boost Tier 2 and Tier 3 Exports

India’s air cargo sector is making a strong case for the restoration of the double dip facility for foreign freighter aircraft, describing it as a critical reform to unlock the next phase of export led growth. Industry bodies have urged the Ministry of Civil Aviation to reinstate the provision that allows overseas cargo aircraft to operate to two Indian airports on a single international journey without carrying domestic freight between them.

Stakeholders believe the suspension of this facility during the pandemic period resulted in a significant loss of international freighter capacity. With India currently operating a limited number of dedicated cargo aircraft compared to global peers, industry leaders argue that policy support is essential to enhance competitiveness and improve global market access.

The proposed restoration is being positioned not as deregulation but as a calibrated reform under regulatory oversight. Industry representatives say the arrangement makes routes commercially viable for regional airports that may not independently generate sufficient cargo volumes to support a full aircraft load. By aggregating cargo streams from multiple cities, the model helps connect emerging production centres directly to Europe, North America and East Asia.

Export oriented sectors, particularly agriculture and high value perishables, stand to benefit significantly. Access to global markets through improved air cargo connectivity can enable better price realisation for farmers and small producers. The broader economic impact includes stronger logistics networks, expanded warehousing capacity and greater integration of Tier 2 and Tier 3 cities into international supply chains.

As India seeks to lower logistics costs and strengthen its position in global trade, the industry views the restoration of the double dip facility as a pragmatic step toward balanced and inclusive growth.