The Indian air cargo market is poised for strong and sustained growth, driven by rising demand across key sectors such as e-commerce, pharmaceuticals, electronics and high-value manufacturing. The total cargo volume handled at airports stands at 3.62 million tonnes (mt) during 2025-26 (till February 2026).
Currently, cargo operations remain limited at a few major metro airports, with nearly 90 per cent of traffic being handled by a few key hubs. Indira Gandhi International Airport in New Delhi is the largest cargo hub in the country, accounting for nearly 30 per cent of the country’s total air cargo traffic. During 2025-26 (till February 2026), the airport handled over 1.04 mt of freight. This was followed by Chhatrapati Shivaji Maharaj International Airport in Mumbai, Kempegowda International Airport in Bengaluru, and the Chennai International Airport, handling more than 0.84 mt, 0.48 mt and 0.38 mt respectively.
Capacity expansion
Cargo infrastructure is being strengthened at major metro airports. AAI Cargo Logistics and Allied Services Company Limited has initiated the process for developing a new cargo terminal at Netaji Subhas Chandra Bose International Airport on a design-build-finance-operate-transfer basis. The Airports Authority of India is also planning a new cargo terminal at Keshod Airport, primarily to boost exports of farmed mangoes. The facility is expected to be operational by 2027.
Meanwhile, Andhra Pradesh Airport Development Company Limited is also developing a comprehensive cargo ecosystem at Kurnool Airport. The project scope includes the design, build, finance and operation of cargo handling facilities such as terminals, internal roads, truck bays, drainage, power supply, ICT systems and utility services. It also emphasises advanced infrastructure like warehousing, cold storage and customs-bonded zones, alongside evaluating multimodal connectivity integrating road, rail, sea and air transport.
FedEx is also set to establish an advanced automated cargo hub at Navi Mumbai International Airport with an estimated investment of Rs 25 billion. The hub is expected to significantly enhance cargo handling capacity with automation-driven efficiency, Interim freighter operations are likely to commence by May 2026.
Tier II and III cities as emerging hubs
Tier II and III manufacturing hubs are emerging as significant contributors to the country’s air cargo ecosystem. Their share in the total air cargo exports is expected to rise steadily as industrial growth continues to move beyond traditional metropolitan centres into smaller cities and emerging economic clusters. These regions are becoming key production bases for sectors such as textiles, electronics, pharmaceuticals and agro-based products, thereby increasing their relevance in the national and global supply chain. However, the lack of adequate cargo infrastructure, including modern terminals, warehousing and handling equipment at Tier II and III airports, remains a challenge. There is also a shortage of specialised facilities such as advanced cold chain systems, which are crucial for pharmaceuticals and perishable exports.
Smart facilities
Modern air cargo facilities are increasingly adopting digital solutions such as automated handling systems, real-time tracking and intelligent warehouse management to streamline operations and reduce turnaround time. Digital twins are being used to create real-time virtual replicas of physical operations at cargo terminals, enabling better planning and control. By shifting from reactive to predictive decision-making, digital twins enhance efficiency, reduce delays and improve asset utilisation.
Key challenges and way forward
India’s logistics costs remain higher than global averages due to factors such as fluctuating fuel prices, rising terminal charges, and additional surcharges imposed by airlines. Moreover, the sector heavily depends on belly cargo space in passenger aircraft instead of dedicated freighters, making capacity inconsistent and often expensive.
To address these challenges, cargo terminals at airports are turning into modern logistics hubs that connect India with the world. As India’s manufacturing landscape becomes more geographically diversified, these emerging export corridors are expected to play a pivotal role in shaping the country’s global trade dynamics. Enhancing connectivity between production centres and major airports will be crucial in unlocking this potential, enabling more efficient, reliable and cost-effective cargo movement.
