India’s air cargo at the crossroads of global trade

As factories hum, e-commerce booms, and time-sensitive shipments surge, India is no longer just an emerging air cargo market but it has become a critical hub for global supply chains, connecting the East with the West. Its geographic advantage, coupled with a surge in manufacturing, is turning the country into a bridge for goods moving across continents. From semiconductors to pharmaceuticals, perishables to automotive components, the story of India’s air cargo is now one of strategy, foresight, and global integration.

At a national level, India today handles around 3.7 million metric tonnes (MMT) of air cargo annually, with international shipments accounting for nearly 60–62% of volumes and domestic cargo contributing the remaining 38–40%. While air cargo represents less than 1% of India’s total trade by volume, it accounts for over 30% by value, underscoring its importance for high-value, time-sensitive exports.

What makes this shift significant is not just the rise in volumes, but the nature of what is moving through Indian skies. Cargo today is faster, more valuable, and far more sensitive to time and conditions than before. Medicines that cannot break the cold chain, electronics that feed global production lines, and components that must arrive exactly when factories need them are redefining how air freight is planned. In this new environment, speed is no longer a competitive advantage alone; reliability, predictability, and network strength matter just as much.

These demands are being fuelled by key growth drivers such as expanding electronics and engineering exports, rising pharmaceutical and vaccine shipments, and the rapid growth of e-commerce and express logistics, all of which depend on speed, reliability, and consistent delivery windows.

At the same time, global supply chains are being redrawn. Manufacturers are rethinking where they produce, how they source, and how goods move between continents. India is emerging as a natural answer to many of these questions. Positioned between East Asia, the Middle East, Europe, and Africa, the country sits at the crossroads of long-haul trade lanes. As production shifts closer to India and export-oriented manufacturing accelerates, air cargo is becoming the invisible infrastructure that allows this transition to function smoothly, quietly stitching India into the heart of global commerce.

This strategic positioning aligns with India’s broader ambition to emerge as a global air cargo hub, with industry projections indicating volumes could reach 5–6 MMT by 2029 and scale up to nearly 10 MMT by 2030.

Manufacturing shifts and sector growth
Over the past few years, the skies above India have told a story of transformation. Once dominated by textiles and traditional goods, the country’s air cargo network has evolved into a complex web carrying high-value, time-critical shipments. Electronics, pharmaceuticals, automotive components, high-tech machinery, and perishables now dominate, signalling India’s emergence as a manufacturing powerhouse.

These commodity shifts mirror national trade patterns, with pharmaceuticals, life sciences, perishables, electronics, automotive components, engineering goods, and e-commerce parcels forming the backbone of India’s air cargo flows today.

Bernard Lee, Regional General Manager South Asia for Etihad Cargo, notes that the airline’s role has shifted profoundly over the last two to three years. It has moved from being a service-focused freight provider to a strategic partner integrated into exporters’ supply chains, aligning capacity and solutions with the demands of India’s high-growth manufacturing sectors. This approach is particularly evident in the handling of pharmaceuticals, where temperature-controlled integrity is non-negotiable, and electronics, where speed is crucial to meet global production schedules. Automotive and engineering sectors, contributing nearly half of India’s manufacturing GDP, are increasingly reliant on just-in-time shipments, while perishables and e-commerce rely on rapid, reliable air connectivity to reach distant markets quickly.

India’s major cargo hubs like Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, and Kolkata together handle nearly 70–75% of the country’s total air cargo volumes, acting as anchors for these evolving sectoral flows.

This transformation is not confined to a single airline. DHL Global Forwarding India has observed that air cargo in India has shifted from being a contingency option to a designed-in pillar of supply chain strategy. Edwin Pinto, Managing Director, explains, “Manufacturers are increasingly embedding air freight into supply chains, particularly for electronics, semiconductors, pharmaceuticals, and life sciences. Air freight is indispensable, not optional.” The shift reflects not only the volume growth of Indian exports but also the evolving composition of these shipments; higher-value, time-sensitive cargo is steadily replacing conventional bulk goods.

Between April and August 2025, India’s merchandise exports rose 2.5% year-on-year to USD 184 billion, with electronics, engineering goods, pharmaceuticals, and industrial commodities leading the charge. High-growth segments like new energy components, solar modules, and biopharmaceuticals are increasingly reliant on air transport due to their high value and stringent delivery timelines. The surge in electronics production, including smartphones and semiconductors, has generated cargo flows that are as strategic to the Middle East and European hubs as they are to India’s own manufacturing ecosystem.

Kuehne+Nagel’s Executive Vice President Air Logistics, Yngve Ruud, observes that India’s cargo mix is becoming more sophisticated.

Healthcare and life sciences continue to drive volumes, particularly as exports shift towards higher-value, temperature-sensitive products. Electronics, semiconductors, and automotive components are also gaining momentum. India is moving from serving domestic demand to becoming an integrated supplier in global production systems.
Yngve Ruud, Kuehne+Nagel

The rise of India’s air cargo is also reshaping logistics approaches. Airlines and freight forwarders now co-develop capacity with exporters, forecast demand using AI analytics, and conduct workshops for sector-specific solutions. Etihad Cargo, for instance, plans to integrate predictive demand planning and AI-driven analytics by 2026, helping partners navigate global market volatility while aligning cargo flows with India’s growing industrial output.

India as a bridge between East and West
India’s geographic advantage is increasingly recognised as a cornerstone of global logistics strategy. Positioned at the intersection of East Asia, the Middle East, Europe, and Africa, India allows airlines to optimise transit times, reduce supply chain costs, and facilitate seamless connectivity across continents. This role is reinforced by government initiatives such as the National Air Cargo Policy and the UDAN scheme, which are expanding air cargo connectivity to tier-2 and tier-3 cities, enabling smaller manufacturing and agricultural clusters to access global markets directly.

For carriers like Oman Air, Muscat functions not merely as a transit hub but as a strategic gateway, enabling swift access from Indian manufacturing centres to Europe, Africa, and the Middle East. Claudius Pereira, Senior Manager – Cargo Commercial Operations at Oman Air, explains, “By extending reach beyond major metros into tier-2 and tier-3 cities, we enable exporters in emerging industrial clusters to access global markets efficiently.”

Lufthansa Cargo also sees India as an increasingly important bridge between East and West. Stephanie Pöhn-Helbig notes that India complements established manufacturing hubs in East and Southeast Asia, providing sourcing and production alternatives for global supply chains. Pharmaceutical exports, which require speed and reliability, continue to dominate, while electronics, high-tech components, and automotive parts are increasingly shipped by air. India’s strategic location supports flexible routing between Asia, Europe, and North America, allowing companies to diversify supply chains and reduce dependency on single regions.

This strategic positioning is mirrored on the ground at airports like Bengaluru, which has emerged as a vital cargo hub in South India. Arun Chandra, Vice President of Aviation Business at Bangalore International Airport, explains that the airport has strengthened its cargo ecosystem with state-of-the-art infrastructure and specialized handling capabilities for perishables, pharmaceuticals, express shipments, and high-value goods. The commissioning of the greenfield domestic cargo terminal and the WFS Coolport, India’s first integrated on-airport perishables handling centre, have dramatically enhanced throughput and enabled seamless end-to-end handling.

The airport’s digital initiatives, including the Airport Cargo Community System (ACS) and the Automated Truck Management Facility (ATMF), have transformed cargo operations. The ACS is a shared digital platform that connects all cargo stakeholders at an airport, allowing information, approvals and cargo movements to flow faster and more smoothly. While the ATMF is a system that digitally schedules and manages truck entry and exit at cargo terminals, reducing congestion and speeding up cargo movement on the ground. Real-time visibility, predictive analytics, and automation ensure faster turnarounds and better capacity planning, making Bengaluru a critical node for South India’s manufacturing, pharmaceutical, and high-tech exports.

India–US tariff reset reshapes air cargo corridor
In 2025, India–US trade tensions intensified, with US tariffs on certain Indian goods reportedly rising to as high as 50%, disrupting shipment planning and squeezing exporters’ margins. In February 2026, an interim agreement reduced those tariffs to around 18%, while India lowered duties on selected US products and increased purchases of US energy, aircraft and defence equipment, restoring greater predictability to bilateral trade.

India is moving into the strategic partner lane for US supply chains, signalling stronger long-term investment in high-value corridors.
Brandon Fried, Airforwarders Association (AfA)

For air cargo, the reset is more about confidence than tariff levels. Pharmaceuticals and electronics are likely to benefit first, though operational factors such as customs consistency and infrastructure capacity will determine how effectively the corridor scales in the coming years.

Digital transformation and operational excellence
India’s cargo transformation is not limited to infrastructure. Airlines and logistics providers are leveraging digital tools, data analytics, and automation to ensure speed, reliability, and compliance. Digitalisation initiatives such as e-Air Way Bills, faceless customs clearance, and airport-level cargo community systems are reducing dwell times, improving transparency, and supporting faster cargo throughput across India’s key gateways.

Bengaluru Airport’s ACS platform integrates airlines, Customs, freight forwarders, and ground handlers, while IoT-enabled infrastructure and automated scanners improve accuracy and efficiency. Landside operations benefit from ATMF, which has reduced truck turnaround times from four hours to one, supporting time-sensitive cargo and e-commerce shipments.

Blue Dart, an express logistics provider, has also embraced this digital shift. National Operations Head Vikram Mansukhani highlights how real-time tracking, secure handling protocols, and coordinated workflows enable the company to maintain consistent service for domestic and cross-border shipments. E-commerce, pharmaceuticals, electronics, automotive components, and critical industrial supplies increasingly rely on predictable, time-sensitive delivery, reflecting a broader trend in India’s cargo market where operational excellence is paramount

DHL’s investments in health logistics hubs, low-emission integrated facilities, and automated sorting centres across India reflect the alignment of infrastructure with sector-specific needs and global supply chain expectations. India is now integrated into DHL’s global air network, ensuring that high-value shipments such as semiconductors, solar components, biopharma, and cloud infrastructure reach their destinations efficiently.

As air cargo becomes faster and more global, security underpins every movement. In India, this responsibility lies with the Bureau of Civil Aviation Security (BCAS), which operates under the Ministry of Civil Aviation and ensures cargo meets international aviation security standards from shipper to aircraft.

BCAS certifies regulated agents and handlers, and mandates screening procedures such as X-ray and explosive checks. Though these measures can affect dwell times, they reinforce global trust, enabling Indian cargo to move smoothly into tightly regulated markets and strengthening the country’s position as a secure air freight hub.

The strategic cargo story unfolds
The evolution of India’s cargo market tells a story beyond numbers. It reflects how manufacturing growth, sectoral diversification, and infrastructural upgrades are creating a new global logistics hub. India’s total airport cargo handling capacity today stands at nearly 8 million tonnes per year, supported by around 30 international air cargo terminals, with new and expanded facilities coming up at Bengaluru, Hyderabad, Delhi, Navi Mumbai International Airport and the upcoming Noida International Airport at Jewar.

Pharmaceuticals have become a cornerstone of India’s air cargo, with generic medicines, vaccines and advanced therapeutics shipped worldwide. Electronics and high-tech goods, from smartphones to semiconductors, feed global just-in-time production systems, while automotive and engineering components increasingly move by air to integrate into international supply chains.

Perishables and cross-border e-commerce highlight the market’s speed-driven shift. The upcoming India–UAE Food Corridor reinforces the growing role of perishables, while e-commerce has created a new cargo segment that demands fast, reliable and flexible handling for global customers.

Kuehne+Nagel’s Ruud notes that India’s diverse cargo profile requires specialized handling, integrated fulfilment, and strategic capacity allocation. From high-value pharmaceuticals to precision automotive components and consumer goods, every shipment reflects a complex supply chain decision. This sophistication has placed India at the heart of multiple regional and global trade corridors, transforming the country into an indispensable logistics partner for airlines and freight forwarders alike.

Challenges
While India’s emergence as a cargo hub is clear, challenges remain. The country has only about 15–20 dedicated freighters, with most cargo carried in passenger aircraft belly holds, making capacity planning crucial. Infrastructure gaps, peak-season congestion and regulatory complexities add pressure, especially as high-value shipments demand precision and reliability.

Airports, airlines and forwarders are responding with infrastructure upgrades, digital tools and closer demand forecasting. Government initiatives such as Make in India and PLI schemes, along with investments in new airports and multimodal links, are strengthening competitiveness and supporting projected volumes of up to 10 million tonnes by 2030.

India’s global supply chain role
India’s rise is not only a story of growth but of strategic relevance. By supporting initiatives such as Make in India, electronics manufacturing, pharmaceutical exports, and integrated logistics parks near airports, air cargo is emerging as a central pillar of India’s trade and industrial policy. Airlines, freight forwarders, and airports increasingly recognise that India is a central node in East–West supply chains. By connecting manufacturing clusters with global markets, integrating digital operations, and aligning with sector-specific needs, India is enabling faster, more reliable, and more resilient trade flows.

Bernard Lee summarises it aptly: “India presents significant opportunities for air cargo growth. Its scale, diversity, and long-term potential make it a strategic priority for global logistics networks.” Airlines like Lufthansa, ANA, Oman Air, and Etihad are aligning fleet utilisation, route planning, and hub operations to ensure India’s exports reach global markets efficiently, while logistics providers like DHL, Blue Dart, and Kuehne+Nagel are embedding India deeply into their network architecture.

The result is a new logistics narrative: India is no longer peripheral; it is central. High-value pharmaceuticals, electronics, automotive components, perishables, and e-commerce shipments are flowing reliably across continents, driving global supply chains. Strategic hubs, digitalised operations, and integrated ecosystems are turning air cargo into the lifeblood of India’s manufacturing ascent.

The road ahead
Looking ahead, India’s air cargo sector is set for steady growth, driven by high-tech manufacturing, semiconductors, new energy components, e-commerce, perishables and pharmaceuticals. This will require continued investment in cold-chain infrastructure, automation and digital systems, while stronger integration of tier-2 and tier-3 cities and closer airline–forwarder–airport partnerships will further expand the country’s logistics network.

Operational excellence, technology and sustainability will define the next phase. With net-zero initiatives at airports and advanced cargo facilities, India is positioning itself not just as an export hub but as a strategic driver of global trade, linking East and West through faster, more resilient supply chains.