Page 30 - ITLN January - February 2025

Industry Report
Indian Air Cargo

Will Indian air cargo growth

outpace structural

challenges?

India’s air cargo industry is poised at a turning point, fueled by rapid economic growth,
government initiatives like Make in India, and rising global demand for electronics,
pharmaceuticals, and perishable exports. However, the sector faces hurdles such as over-
reliance on a few airports, infrastructure gaps, and geopolitical shifts. Will India’s air cargo
soar to global leadership or struggle under these challenges?
Libin Chacko Kurian
ndia’s air cargo sector is emerging between 5 and 5.8 million tonnes
as a global leader propelled by of annual cargo by the end of 2029
economic expansion and strategic compared to 3.7 million tonnes today.
Ipolicy initiatives. Indian air cargo "Strong expected economic and
outperformed overall world air cargo trade growth is likely to drive additional
growth in 2024, with international traffic air cargo volumes over the next five
growing at 19 percent compared to a years. We expect the Indian air cargo
global average of 13 percent, according market to outperform the overall
to the India Air Cargo Outlook 2025- global air cargo market," it reads.
2029 report by Trade Data Service of Glyn Hughes, Director General of
Trade and Transport group published in The International Air Cargo Association
January 2025. (TIACA), attributes this growth to a
The report also projects Indian air combination of factors including strong
cargo to grow annually by 6 to 9 percent expansion of the manufacturing sector
for the next five years and handle and continued success in high-tech,
pharmaceuticals, aerospace, automotive
and perishable exports. “India is also
expected to be a significant beneficiary
of an accelerated China plus One
production strategy that could result
following the promised introduction
of further tariffs on Chinese

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