As India’s aviation sector expands eastward, IndiGo’s direct service between Kolkata and Siem Reap — launching on 13th November 2025 — represents more than a tourism milestone. It marks a new phase in India–Cambodia trade relations, unlocking a long-underutilised cargo corridor within the ASEAN–India framework.
While the route’s immediate appeal lies in passenger travel and cultural exchange, its implications for air cargo are strategic. As the first Indian carrier to connect the two nations directly, IndiGo could reshape South–Southeast Asian trade logistics, especially as regional economies recalibrate supply chains away from China.
Anchored in economic potential
Bilateral trade between India and Cambodia reached about US$480 million in FY2024, up 14 percent year-on-year, yet still under one percent of India’s total ASEAN trade—leaving room for growth. Indian exports include pharmaceuticals, refined petroleum, machinery, textiles, and iron and steel, while Cambodia exports garments, footwear, and agricultural produce such as rubber and cassava starch.
Most cargo currently moves via Singapore or Bangkok, inflating costs and transit times. Direct air connectivity offers the first chance to streamline shipments, especially for high-value, time-sensitive exports. Each IndiGo A320neo can carry four to six tonnes of cargo, providing roughly 36 tonnes of weekly capacity—small but meaningful for smaller forwarders and exporters seeking faster market access.
India’s Act East policy
The route aligns with India’s Act East policy, aimed at deepening trade, connectivity, and investment with ASEAN. Cambodia, a signatory to the AIFTA and RCEP, enjoys tariff preferences on many goods, yet logistical bottlenecks have limited the utilisation of these frameworks.
By linking Kolkata directly with the Mekong subregion, IndiGo bridges a key gap. The city’s pharmaceutical, leather, and engineering industries gain faster access to Cambodia, Vietnam, Laos, and Thailand.
“Direct connectivity reduces logistics costs and uncertainty associated with multimodal transhipments,” the Ministry of Commerce and Industry noted. “For smaller exporters, such air corridors are critical enablers of diversification and market access.”
From Tourism to Trade
Siem Reap, best known as the gateway to Angkor Wat, has emerged as a secondary cargo hub after its 2024 airport upgrade. Cambodia’s airfreight volumes reached 73,000 tonnes in 2024, with pharmaceuticals, electronics, garments, and perishables leading.
Indian pharmaceutical exports to Cambodia, worth US$48 million in 2024, are expected to rise as Cambodia expands healthcare capacity. IndiGo’s service enables faster deliveries of temperature-sensitive APIs and medical devices—ideally suited for bellyhold cargo.
Cambodia’s textile and footwear exports to India, though small, may also grow as Indian brands diversify sourcing to reduce reliance on China and Bangladesh. Its “Everything But Arms” privileges with Western markets make it attractive for re-export processing under India’s Make in India and PLI schemes.
Trade diversification
The route launch comes amid global trade volatility. The US–China tariff regime and new American duties on select Indian goods are accelerating India’s push for alternative export channels and partnerships within Asia.
With stable investment conditions and competitive labour costs, Cambodia fits naturally into India’s “China+1” strategy. The direct link facilitates two-way flows—finished goods from India and semi-finished inputs from Cambodia—strengthening India’s position in ASEAN’s manufacturing network and helping bypass current trans-Pacific bottlenecks.
Southeast Asian footprint
The Kolkata–Siem Reap route is IndiGo’s seventh international destination from Kolkata, underscoring its ambition as a pan-Asian carrier. Its low-cost, high-frequency model suits emerging cargo markets that prefer smaller, steady shipments to dedicated freighters.
Having recently expanded to Vietnam, Singapore, and Thailand, IndiGo now covers key Mekong trade nodes. “Connecting India to Cambodia is part of our broader strategy to strengthen regional trade and tourism,” said Pieter Elbers, IndiGo CEO. “Kolkata’s position lets us efficiently connect eastern India’s cargo flows to Southeast Asia.”
Policy and infrastructure multiplier
Cambodia’s Rectangular Strategy IV prioritises logistics modernisation, with new airport, cold chain, and customs investments boosting cargo handling capacity. India’s National Logistics Policy and PM Gati Shakti initiatives are improving multimodal integration, complementing Cambodia’s efforts.
According to the Asian Development Bank, ASEAN–India trade could rise by 30–40 percent in five years if logistics barriers fall—a target that underscores the strategic role of new corridors like Kolkata–Siem Reap.
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Author: Ajinkya Gurav
