Air cargo sector records 47% growth over last decade: Eco Survey

India’s air cargo sector is in a growth phase, recording a 47% expansion over the last decade. According to the Economic Survey 2025-26, cargo volumes have surged from 2.53 million metric tonnes (MMT) in FY15 to 3.72 MMT in FY25, consistently outperforming global averages.

The government's wide-ranging reforms have demonstrably advanced the industry, as highlighted by the survey. Specifically, the cargo sector has become a critical importance for the nation's economic logistics, effectively complementing the sustained strong performance in passenger traffic.

With the greenfield airport policy, the nation has seen a flurry of new airport constructions and the modernisation of existing hubs. As of FY24, India’s total cargo handling capacity has reached a staggering 8.0 million MT.

The surge is further fortified by landmark legal reforms designed to increase ease of doing business and protect investments. Two critical pieces of legislation have provided the necessary stability for this expansion:

The Bharatiya Vayuyan Vidheyak 2024 is a comprehensive overhaul of aviation regulations.

The Protection of Interests in Aircraft Objects Act 2025, aimed at securing the interests of lessors and investors, making the market more attractive for global players.

"The Indian aviation sector is no longer just catching up; it is setting the pace," the Economic Survey notes. "With capacity expansion and tech-upgrades, the industry is well-positioned to handle the logistics demands of a global economic powerhouse."

Fleet expansion
Looking ahead, industry Boeing predicts a period of unprecedented demand, forecasting that Indian and South Asian airlines will require nearly 3,300 new airplanes between 2025 and 2044.

Driven by a boom in high-tech manufacturing and e-commerce, the region's freighter fleet is expected to grow five times its current size. To support this influx, Boeing estimates a need for over $195 billion in aviation services, including maintenance and digital training, alongside a massive recruitment drive for roughly 141,000 new professionals, including pilots and technicians.

In a move that signals India's shift toward becoming a manufacturing hub, the Adani Group has announced a partnership with Brazil’s Embraer SA to launch a regional transport aircraft venture. This marks Adani’s official entry into commercial aviation manufacturing.

By leveraging its experience in airport management and defense, the Adani Group aims to advance India’s goal of increasing its share in the global aerospace supply chain, moving beyond assembly into high-value parts and component production.