With the 25% secondary tariffs on export of Indian goods to the United States slated to come into effect from 27th August, India is exploring multiple ways to cushion its exporters from an adverse impact. Government sources have said that the Commerce Ministry is expected to soon hold a meeting with the Aviation Ministry to devise ways to increase India’s exports via the air cargo route.
The proposed meeting will focus on ways to optimise and economise exports of light-weight merchandise via the air cargo route.
Sources added that an increase in unit economics and profitability of air cargo exports will incentivise overall growth of air cargo capacity.
Air cargo is the costliest mode of transport compared to road, rail, and waterways, and is usually used to transport high-value goods.
Among the top 10 export items, light-weight goods include electronics, gems and jewellery, pharmaceuticals, auto parts, and other light engineering goods.
Currently, most air cargo from India is transported via passenger aircraft, while less than 15% is exported via freight aircraft.
India is planning to increase the overall air freight capacity to 10 million tonnes by 2030, which was recorded at 6.5 million tonnes in 2024 by the Air Cargo Federation of India (ACFI).
As per the ACFI, India’s air freight market is expected to grow with 5.7% CAGR to reach $16.37 billion by 2027.