India's air cargo industry is witnessing unprecedented growth, with industry leaders calling for significant expansion in freighter capacity and infrastructure, especially in secondary cities. Ramesh Mamidala, cargo chief at Air India, stated that increased capacity and improved infrastructure are essential to meet the rising demand for air freight services across the country.
Presently, India handles about 3.5 to 3.7 million tonnes of cargo annually, with projections estimating this could grow to 10 million tonnes by 2032 and 25 million tonnes by 2047. However, the majority of cargo volumes—70-80%—are concentrated at only a few major airports, leaving secondary airports underutilized and infrastructure underdeveloped.
Market Trends and Price Dynamics
Over the last couple of months, cargo prices have doubled, driven by geopolitical issues that are causing airlines to reroute longer distances. These extended routes are increasing fuel consumption and reducing capacity, thereby raising logistics costs and impacting supply chains.
"The demand for air freight services is rising sharply, and to meet this, we need to expand cargo handling facilities and fleet capacity,"
Government and industry stakeholders are advocating for investments in secondary airports to alleviate congestion and bolster capacity. Such infrastructure enhancements aim to facilitate faster, more efficient movement of goods and strengthen India’s position in global trade networks.
Overall, expanding cargo infrastructure and fleet capacity will be critical to supporting the country’s strategic growth in logistics and commerce in the coming decades.
