Trade Relations - India aims to move past tensions with the US and resume trade negotiations, as indicated by Ajit Doval's meeting with Secretary of State Marco Rubio [1][21] - A trade agreement was announced by Trump, reducing tariffs on Indian goods to 18% and scrapping a 25% duty on Russian oil purchases [6][22] - India is expected to purchase $500 billion of US goods and reduce tariffs on US imports to zero, although these details have not been officially confirmed by the Indian government [6][22] Strategic Partnerships - New Delhi views the US as a long-term strategic partner, essential for capital, technology, and military cooperation to counter China [10][20] - The arrival of US Ambassador Sergio Gor in December marked a renewed effort to stabilize US-India relations, emphasizing the importance of ties between the two nations [12][14] - India is diversifying its trade relationships, having recently secured free trade agreements with the European Union and the UK, indicating a strategic shift amidst US negotiations [16][22] Economic Impact - The US is a crucial market for India, accounting for about 20% of its exports, particularly in mobile phones and electronic goods, which are vital for India's manufacturing goals [18][22] - Significant investment pledges from US companies, including $52 billion from Amazon and Microsoft, and $15 billion from Google for data centers, highlight the growing economic ties [18][22] - Goldman Sachs has established its largest office outside of New York in Bengaluru, underscoring India's increasing importance to the US financial sector [19][22]

Core Insights - Hyderabad airport has registered the fastest growth in international cargo volume among major airports in FY 2025, driven by high-value pharmaceutical product exports [1] - The airport aims to sustain growth through enhanced air connectivity and a diversified product mix, including perishables and electronic goods [2] Cargo Terminal Expansion - The existing cargo terminal is being expanded, and a second terminal is being added to handle 50,000 tonnes of cargo [3] - A dedicated facility for perishable product exports is being constructed with a handling capacity of 25,000 tonnes [3] Perishable Exports Facility - The new facility will include dedicated chambers for meat, fish, flowers, fruits, and vegetables to ensure temperature integrity and avoid cross-contamination [4] - There are plans to explore the establishment of an irradiation facility and pack house to support perishable exports [4] Competitive Positioning - The airport aims to compete with Mumbai and Bengaluru for a larger share of exports from Southern India, reducing transportation costs for agents and shippers [5] - Direct exports from Telangana and Andhra Pradesh are expected to be enabled through these initiatives [5] Air Traffic Growth - Compared to the pre-COVID period, there has been a 19% growth in international air traffic movements, with a 47% increase in the number of new international destinations [6] - KLM Royal Dutch Airlines has initiated thrice-weekly flights from Amsterdam, and Cathay Pacific is increasing its Hong Kong flights to daily service [7] Freighter Movements and Capacity - In FY 2025, the airport handled around 1,000 freighter movements, with a 15% increase in freighter capacity to the Middle East, Europe, and Africa [8] - Passenger belly capacity has also increased by 12%, supporting the growth of cargo capacity requirements [8] Loyalty Program for Freight Forwarders - A loyalty program for freight forwarders has been launched, offering priority cargo handling, demurrage waivers, and loyalty rewards [9] Export Market Context - India's merchandise exports grew by 2.5% year-on-year from April to August, with exports to the US rising by 18% during this period [10] - However, there was a month-on-month decline of 14% in exports to the US due to the imposition of an additional 25% tariff on Indian exports [10]