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India's air cargo sector is emerging as a global leader propelled by economic expansion and strategic policy initiatives. Indian air cargo outperformed overall world air cargo growth in 2024, with international traffic growing at 19 percent compared to a global average of 13 percent, according to the India Air Cargo Outlook 20252029 report by Trade Data Service of Trade and Transport group published in January 2025.
The report also projects Indian air cargo to grow annually by 6 to 9 percent for the next five years and handle between 5 and 5.8 million tonnes of annual cargo by the end of 2029 compared to 3.7 million tonnes today.
"Strong expected economic and trade growth is likely to drive additional air cargo volumes over the next five years. We expect the Indian air cargo market to outperform the overall global air cargo market," it reads.
Glyn Hughes, Director General of The International Air Cargo Association (TIACA), attributes this growth to a combination of factors including strong expansion of the manufacturing sector and continued success in high-tech, pharmaceuticals, aerospace, automotive and perishable exports. "India is also expected to be a significant beneficiary of an accelerated China plus One production strategy that could result following the promised introduction of further tariffs on Chinese imports by incoming US President Donald Trump," Hughes explained.
Indiaâs electronics sector exemplifies this trajectory. Electronic exports jumped 27 percent to $22 billion in April-November of 2024-25, from $17 billion during the same period in 2023-24. Ruby Abidi, Director of Air Cargo at cargo-partner, credits government initiatives like Make in India and the Production Linked Incentive (PLI) scheme for these advancements. âThe manufacturing prowess that India has developed is gaining strides,â she said.
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