India’s cargo network rewrites its playbook for global trade

As India’s cargo flows become more predictable and balanced across exports and imports, the industry is beginning to recalibrate its expectations. International airlines with large India footprints recognise the scale of this shift toward steadier, more diversified cargo flows. Traffic patterns and cargo flows now signal a more stable long-term demand curve for many operators. The change is strongly visible in Oman Air Cargo’s India network. “India is our number one market,” says Atif Al Rawahi, Officer of Cargo Sales Support, Oman Air Cargo. He points to the carrier’s extensive presence. “Oman Air currently operates more than 75 weekly flights across 10 locations in India, and with two new airports opening in New Mumbai and Noida, we are expecting further growth in the region,” says Al Rawahi.

At a national level, cargo movement remains steady. Airports Authority of India (AAI) data shows that Indian airports handled around 0.326 million tonnes of freight in October 2025, a year-on-year decline of 2.3 percent. However, this monthly dip is set against a more positive longer period. Between April and October 2025, total freight handled across all airports rose 3.8 per cent to 2.28 million tonnes. These numbers reflect a market adjusting in the short term while expanding in the medium term.

Exports and imports taking new shape
India’s air cargo profile continues to reflect the country’s evolving industrial structure. Pharmaceuticals remain the anchor of outbound tonnage, with strong demand across global markets. Engineering goods, garments, perishables, and automotive components form the next layer of consistent exports. Electronics manufacturing, particularly smartphones and components, now adds significant uplift from southern hubs.

Carriers moving goods across India’s major gateways see a clear shift in the commodity mix. “We have seen the strongest growth in commodities such as pharma, e-commerce, engineering goods, and spare parts,” says Al Rawahi. These categories have supported stable year-round uplift and shaped freighter schedules.

Imports remain driven by domestic consumption and industrial needs. Electronics, machinery, components, and high-value parcels represent the bulk of inbound volumes. These flows support both consumer markets and factory operations. Seasonal influences remain strong. Electronics imports rise before the festive season, while perishables peak during agricultural harvests.

Export routing is undergoing its own recalibration. “India’s export demand is currently reshaping air freight dynamics in a noticeable way,” says Baby George, Regional Head of Airfreight IMEA, Hellmann Worldwide Logistics. Some long-standing corridors are changing. “India and the U.S. are losing volume due to changing trade and tariff conditions; Europe-bound lanes remain comparatively stable,” says George.

Shifts in capacity and carrier networks
India’s air cargo capacity is supported by the return of widebody passenger flights and the steady operation of scheduled freighters. Gulf, European, and East Asian carriers supply most long-haul lift into and out of India, supported by extensive passenger networks whose bellyhold capacity underpins cargo schedules.

Indian carriers are reshaping their cargo strategies. Air India’s widebody expansion will strengthen long-haul options. IndiGo continues to assess the role of dedicated freighters, which could expand domestic and regional coverage. Express operators maintain strong domestic networks that rely heavily on nighttime operations.

Freighter capacity continues to play a vital role in lifting time-sensitive engineering goods, electronics, and perishables, while charters remain important for seasonal surges. E-commerce has influenced carriers to adopt more predictable schedules and consistent departure windows across key hubs.

The broader direction is reinforced by AAI freight data. While October 2025 saw a 2.3 per cent decline in both international and domestic freight, cumulative freight from April to October grew strongly. International freight increased 3.3 per cent during this period to 1.416 million tonnes, while domestic freight rose 4.7 per cent to 0.864 million tonnes. These shifts indicate that despite a soft month, the underlying freight environment remains positive.

India’s air cargo growth is being driven primarily by pharmaceuticals, electronics, automotive and industrial goods.
Baby George, Hellmann Worldwide Logistics

Drivers behind the market’s direction
Manufacturing growth is driving India’s rise in air cargo activity. Electronics clusters in Tamil Nadu and Karnataka now ship smartphones, wearables, and components that depend on air transport for speed and reliability. Automotive and EV supply chains are sending more machinery, sensors, and critical parts by air to meet time-sensitive production needs. Aerospace and defence industries in Bengaluru and Hyderabad continue to generate steady specialised cargo.

Policy incentives under the PLI (Production Linked Incentive) schemes have supported this shift. Contract manufacturing for electronics and high-value components is expanding India’s export base and is adding depth to long-term cargo flows.

Carriers linking India to strategic regions see significant opportunity. “Muscat has direct flights to over 29 destinations, including major hubs in the Middle East, Europe, and the Indian Subcontinent,” says Al Rawahi. Speed remains a competitive advantage. “Flight landing and takeoff times are organised specifically to limit transit time, which can be as low as 90 minutes,” says Al Rawahi.

Short-term outlook: The next 6 to 12 months
The near-term outlook points to stable growth in air cargo, though at a moderate pace. Rising passenger capacity is adding more bellyhold space to the market, while freighter utilisation will continue to track cycles in electronics, engineering, and perishables.

Operational expectations are also increasing. “Shippers increasingly require secure handling, temperature-controlled infrastructure, fast customs clearance and reliable multimodal connectivity,” says George. These needs become more visible during peak periods, when airport systems face higher pressure.

The dip in freight volumes recorded in October 2025 appears to be a temporary softening rather than a sign of structural change. AAI’s April to October data shows a more consistent pattern of expansion, driven by growth in both international and domestic freight.

Medium-term outlook: The next 2 to 3 years
Airport infrastructure upgrades are set to shape India’s medium-term air cargo capacity. Delhi, Hyderabad, Bengaluru, Chennai, and Mumbai are expanding their cargo terminals to manage higher volumes, while the upcoming Navi Mumbai airport is expected to shift cargo flows on the west coast by adding essential new capacity.

Manufacturing clusters in electronics, EV components, semiconductors, and aerospace parts are likely to deepen their integration with air cargo corridors. Regulatory reforms and customs digitisation are expected to shorten clearance times and improve reliability at major hubs.

Airlines preparing for this environment are responding to the growing opportunity. “The Indian market holds huge potential,” says Al Rawahi. Rising industrial output and stronger links to regional hubs are expected to support continued demand.

Ground handling at Indian airports is very seamless and professional, so we often find the experience of handling Indian origin cargo a positive one.
Atif Al Rawahi, Oman Air Cargo

Inside India’s cargo hubs
India’s major cargo hubs each serve a distinct industrial region. Delhi remains the largest hub with strong cold chain infrastructure and automated handling systems. Mumbai handles large volumes but faces capacity constraints that intensify during peaks. Hyderabad leads in pharmaceutical exports with specialised temperature-controlled zones. Bengaluru benefits from electronics and engineering industries. Chennai supports automotive, industrial, and electronics flows.

Freight patterns across these hubs align with broader national trends. In October 2025, international freight at Indian airports reached 0.198 million tonnes, while domestic freight totalled 0.127 million tonnes, according to AAI. Both categories experienced a 2.3 per cent year-on-year decline. However, cumulative April-to-October data shows an upward trajectory that is more reflective of the sector’s medium-term direction.

Investment in automation, community digital platforms, and improved truck handling continues to advance. Navi Mumbai is expected to relieve some of the pressure on Mumbai and enable more predictable scheduling for exporters.

How the supply chain moves
India’s air cargo supply chain relies on the coordination of freight forwarders, customs brokers, ground handlers, and trucking operators. Global forwarders handle large export flows, while mid-sized Indian firms manage niche sectors and regional consolidations. Domestic express companies operate extensive night networks to meet time-definite service requirements.

Documentation accuracy and customs compliance are central to efficient cargo movement. Digital systems such as electronic airway bills, online booking tools, and integrated visibility layers are being adopted across major hubs. Manual checks persist at certain airports, especially during peak demand.

Reliability at origins has improved. “Reliability at India origins has improved noticeably in recent years,” says George. He notes that predictability increases with planning. “With early booking and proper planning, however, India-origin shipments can achieve consistent and competitive transit times,” says George.

Bonded trucking corridors allow shipments to move across airports without re-clearance. This supports exporters located far from gateway airports and links manufacturing clusters to wider cargo networks.

Cost competitiveness in a regional context
India’s air cargo cost structure includes handling fees, screening charges, storage costs, and fuel-linked surcharges. Exchange rate movements influence overall pricing. Operational factors such as dwell time, congestion, and truck access also shape cost competitiveness.

Compared with regional hubs like Dubai, Doha, Singapore, and Hong Kong, India benefits from strong demand but continues to refine process consistency. Progress depends on infrastructure, technology, and policy reforms. George highlights the priorities. “Further progress depends on expanded terminal capacity, stronger cold chain infrastructure, standardised handling procedures and deeper digital integration.”

State-level incentives such as reduced night charges and export rebates further support industry growth. Digital adoption is expected to lower administrative costs as systems mature.

Industries that shape the cargo base
Pharmaceuticals continue to generate steady export volumes because they require controlled handling and serve consistent global demand. Electronics manufacturing, supported by PLI schemes, has become one of the fastest-growing sources of outbound cargo. The automotive and EV sectors move machinery and high-value components that depend on precise scheduling and rapid uplift. Aerospace and defence industries also contribute to specialised shipments that reinforce overall cargo activity.

Perishables remain a seasonal anchor, with fruits, flowers, and seafood moving through both scheduled and charter flights. MRO activity contributes to consistent movement of aircraft parts.

Balancing risks with opportunity
India’s air cargo outlook faces risks from crude price swings, currency movements, global trade uncertainty, congestion at major airports, uneven digital adoption, and peak season capacity pressures. Operational resilience is essential, supported by “efficient ground handling, robust documentation and digital processes,” says George. External disruptions from geopolitical tensions, rerouted airspace, or climate events can also influence schedules and costs.

Yet the next phase of growth is being shaped by new airport capacity, expanding manufacturing clusters, digital trade corridors, and stronger cold chain investment. “We have had very limited operational or regulatory issues when handling Indian-origin cargo,” says Al Rawahi, reinforcing India’s position as a dependable regional hub.

A clear direction ahead
India’s air cargo sector is entering a more structured and stable phase of growth. Freight volumes are projected to rise steadily over the next two years, supported by expanding industrial activity, additional airport capacity, and ongoing digitisation across cargo operations. AAI freight data reflects this trend, with month-to-month variation but strong cumulative growth in the first seven months of the financial year.

Carriers and forwarders are expected to track price movements, shifts in trade lanes, and congestion patterns at key hubs. India’s position in regional cargo networks is strengthening as manufacturing scales up and supply chains diversify.

With infrastructure upgrades, expanding industrial capacity, and increasing confidence from global operators, India’s air cargo market is positioning itself as a central link in global supply chains, poised for sustained long-term growth.

The article was originally published in the Dec 2025 issue of The STAT Trade Times.