India’s air cargo industry grows amid global expansion in January 2025

The International Air Transport Association (IATA) has released data for January 2025, marking the 18th consecutive month of growth in global air cargo demand. Total demand, measured in cargo tonne-kilometers (CTK), rose by 3.2% compared to January 2024, while capacity, measured in available cargo tonne-kilometers (ACTK), increased by 6.8% year-on-year.

India’s logistics sector stands to benefit from this sustained growth, as e-commerce expansion, manufacturing resurgence, and government-driven infrastructure initiatives continue to enhance air cargo demand. IATA’s report highlights mixed performance across regions, with India’s positioning in the global logistics market gaining traction amidst growing international demand.

India’s air cargo growth prospects are reflected in expanding trade lanes and rising e-commerce volumes. The Asia-North America trade lane saw a 6.1% increase, benefiting India's exports to the U.S. Similarly, the Europe-Asia route recorded a 3.2% growth, further boosting India-EU trade relations. Meanwhile, North America-Europe observed a 9.7% surge, strengthening global supply chains connected to Indian markets. However, the Middle East-Asia trade lane experienced a 3.0% decline, impacting transshipment traffic through key hubs like Dubai and Doha. On a positive note, the within-Asia market grew by 7.6%, creating new opportunities for India’s intra-Asia cargo expansion.

Several economic and operational factors continue to influence India's logistics and air cargo market. The make in India initiative and export-driven policies have significantly contributed to the expansion of the country’s manufacturing sector, strengthening its role in global trade. Additionally, India's booming e-commerce industry has fueled the demand for air cargo logistics, particularly for express deliveries, as online shopping gains momentum.