Page 17 - ITLN March-April 2025

TRADE AND TRANSPORT GROUP

We expect Indian air cargo traffic to grow between 6.2% and 9.1% per year for the next five
Trade and Transport Group expects Indian air cargo traffic to grow between 6.2% and 9.1% per year
years. This could see total cargo volumes increase from 3.7 to 5.8 million tonnes.
for the next five years. This could see total cargo volumes increase from 3.7 to 5.8 million tonnes.

India Air Cargo History and Forecast 1995 - 2029
6000

5000
2023: 2.7%
4000
Tonnes Handled 3000 1999-2019: 8.4% 2009-2019: 6.7% Forecast Range
2025-29
6.2% - 9.1%

2000
2014-19: 6.6%
2024: 14.9%
1000

0
1995 2000 2005 2010 2015 2020 2025
Source: Trade and Transport Group, Prepared 2 Jan 2025, updated 14 Mar 2025

WWW.TANDTGROUP.NET
14 Mar 2025
chains away from China, Indian exports “The government has recognised 5
are gaining traction. However, Horst the growth potential of the industry
flags a potential concern: “Given the and has actively supported it. The
level of growth we have seen in the expansion of freighter operations and
US, there is always a danger that this dedicated cargo terminals has eased
may get reversed due to trade policy congestion and improved access. We’re
measures. The US is running a bigger also tapping into regional airports like
trade deficit with India than with Cochin and Coimbatore to support tier-
Mexico and Canada.” 2 and tier-3 connectivity,” added Jeena
This underscores the fragility of & Company’s D’Souza.
India’s export-led air freight growth, He adds that policy and digital
which remains vulnerable to external reforms are having a tangible impact
economic policies and shifting on efficiency: “Faster customs
geopolitical alliances. processes, like single window
Apart from that Jeena & Company Our Coolport terminal clearance and e-Sanchit, have reduced
also notes that challenges like is built with over 20 delays for time-sensitive cargo. The
aircraft capacity constraints, rising adoption of Cargo Community Systems
airport and fuel costs, fast-moving specialised cold rooms is aligning well with our automation
tech advancements, and geopolitical and IoT-enabled tracking efforts, and trade agreements — like
disruptions continue to add operational for real-time control. the FTA ( Free Trade Agreement) with
complexity and financial pressure on Australia — have helped expand our
the air cargo industry — particularly Manish Agnihotri international footprint.”
during peak seasons or in times of WFS India While Horst did not comment on
global tension. specific government initiatives, he
affirmed the broader trajectory: India’s
Looking ahead play an increasingly central role in air cargo industry is no longer playing
Looking toward 2030, the outlook India’s trade narrative. Infrastructure a supporting role. Instead, it is fast
for India’s air cargo sector remains investments — including dedicated emerging as a strategic lever in the
highly optimistic. With projected freight corridors, cargo village country’s trade and logistics ambitions—
growth in high-value exports, developments, and widespread connecting Indian goods to global
digital trade, and cross-border digitisation — will be key enablers in markets with greater speed, precision,
e-commerce, air freight is set to this next phase of transformation. and technological sophistication. 
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