India Air Cargo Market

India Air Cargo Market Overview:

The India air cargo market size reached 3.26 Million Tons in 2024. Looking forward, IMARC Group expects the market to reach 9.56 Million Tons by 2033, exhibiting a growth rate (CAGR) of 11.50% during 2025-2033. The market is expanding due to e-commerce growth, infrastructure development, and policy support. Government initiatives, the rising demand for express logistics, and investments in airport modernization are enhancing capacity, efficiency, and connectivity, strengthening India’s position as a key regional air freight hub.

India Air Cargo Market Trends:

Expansion of E-Commerce Driving Air Cargo Demand 

India's air cargo industry is witnessing notable growth, mainly propelled by the amplified expansion of the e-commerce sector. For instance, as per industry reports, e-commerce sector in India is anticipated to grow to USD 550 Billion by the year 2035, with online shoppers in tier 2 and 3 cities increasing to 56% in FY2024 and anticipated to further increase to 64% by the financial year 2030. Major online retail platforms are increasing reliance on air freight for faster delivery across the country. Rising internet penetration, digital payment adoption, and consumer preference for quick logistics solutions are fueling the demand for express air cargo services. Additionally, the development of dedicated air cargo networks by major e-commerce firms, along with increased investment in air freight infrastructure, is strengthening the sector. Regulatory initiatives, such as relaxed foreign direct investment (FDI) policies in aviation and improved airport cargo handling capacity further support growth. Express logistics providers are adopting advanced technologies like AI-driven route optimization and automation in warehousing to enhance efficiency. As competition intensifies, airlines and cargo service providers are expanding dedicated freighter fleets, leveraging airport modernization projects, and enhancing cold-chain logistics for perishable goods transportation.

Infrastructure Development and Policy Support Boosting Market Growth 

Infrastructure expansion and government policy support are key factors driving India’s air cargo market. The National Air Cargo Policy aims to increase air cargo handling capacity and position India as a global transshipment hub. Investments in dedicated air cargo terminals, free trade zones, and multimodal logistics parks are strengthening the supply chain network. For instance, as per industry reports, air cargo sector in India is expected to receive a heavy investment of USD 4.99 Billion over the next 4 years. Besides this, by the year 2026, the government plans to allocate USD 1.83 Billion for airport infrastructure development and enhancement of aviation navigation services. Moreover, the implementation of DigiYatra and digital cargo tracking systems is enhancing operational efficiency and reducing turnaround times. Additionally, airport privatization and modernization efforts are increasing cargo handling capabilities, particularly in major hubs such as Delhi, Mumbai, and Bengaluru. The government's push for indigenous aircraft manufacturing and leasing incentives under Atmanirbhar Bharat is further contributing to long-term market stability. The rise of regional connectivity under the UDAN scheme is also facilitating air freight expansion in Tier-2 and Tier-3 cities. These developments are improving logistics efficiency and supporting the increasing demand for domestic and international air cargo transportation.

India Air Cargo Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region level for 2025-2033. Our report has categorized the market based on type, service, destination, and end user.

Type Insights:

• Air Freight
• Air Mail

The report has provided a detailed breakup and analysis of the market based on the type. This includes air freight and air mail.

Service Insights:

• Express
• Regular

A detailed breakup and analysis of the market based on the service have also been provided in the report. This includes express and regular.

Destination Insights:

• Domestic
• International

A detailed breakup and analysis of the market based on the destination have also been provided in the report. This includes domestic and international.

End User Insights:

• Retail
• Food and Beverages
• Pharmaceutical and Healthcare
• Consumer Electronics
• Automotive
• Others

A detailed breakup and analysis of the market based on the end user have also been provided in the report. This includes retail, food and beverages, pharmaceutical and healthcare, consumer electronics, automotive, and others.

Regional Insights:

• North India
• South India
• East India
• West India

The report has also provided a comprehensive analysis of all the major regional markets, which include North India, South India, East India, and West India.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

India Air Cargo Market News:

• In January 2025, Andhra Pradesh Trade Promotion Corporation (APTPC) announced that it is set to manage the cargo operations at Vizag airport where international air cargo operations are anticipated to initiate soon.
• In August 2024, Air India Group announced plans of upgrading its cargo services across its 4 airlines, suggestively resulting in the development of a separate body with dedicated freighters. This tactical more targets to capitalize on India's augmenting air cargo industry. The company also revealed plans to design an extensive software for managing commercial ecosystem, revenue, and requests for cargo.

India Air Cargo Market Report Coverage:

Key Questions Answered in This Report:

• How has the India air cargo market performed so far and how will it perform in the coming years?
• What is the breakup of the India air cargo market on the basis of type?
• What is the breakup of the India air cargo market on the basis of service?
• What is the breakup of the India air cargo market on the basis of destination?
• What is the breakup of the India air cargo market on the basis of end user?
• What is the breakup of the India air cargo market on the basis of region?
• What are the various stages in the value chain of the India air cargo market? 
• What are the key driving factors and challenges in the India air cargo market?
• What is the structure of the India air cargo market and who are the key players?
• What is the degree of competition in the India air cargo market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India air cargo market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the India air cargo market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India air cargo industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.