India’s air cargo sector is facing mounting pressure as capacity from Gulf carriers dwindles, leading to rising freight costs and logistical challenges for exporters. Key Middle Eastern airlines, which handle a substantial share of India’s international air cargo, have reduced flights due to regional tensions and operational constraints, tightening available space for shipments.
Exporters report that reduced seat availability is driving up air freight rates, particularly for time-sensitive and high-value goods such as pharmaceuticals, electronics, and perishables. Industry sources said that some shipments are being delayed or rerouted, adding to operational costs and complexity.
Government officials are closely monitoring the situation and are in talks with carriers to explore alternative arrangements, including leveraging other international routes and coordinating with domestic logistics providers to ease congestion. Exporters are also advised to plan shipments in advance and consider flexible routing options to mitigate the impact of the Gulf capacity crunch.
Analysts warn that if the disruption continues, it could affect India’s export competitiveness , particularly in markets that rely heavily on Gulf transit hubs. The situation highlights the vulnerability of air cargo flows to geopolitical instability and the need for diversified logistics strategies.