India’s exporters are pressing the government to accelerate new trade agreements and diversify logistics routes after air cargo volumes to the United States dropped sharply in recent weeks.
Forwarders report that freight movement on key India–US corridors has fallen by double digits, driven by a slowdown in US consumer demand, high inventories, and ongoing geopolitical disruptions that have pushed shippers to cut costs.
“Airfreight to the US has become increasingly unsustainable for exporters of perishables, pharmaceuticals, and high-value goods. We urgently need more market access and bilateral trade deals that can help offset the demand slump,” said a representative from the Federation of Indian Export Organisations (FIEO).
Industry data shows that India–US air cargo demand, which accounts for nearly a third of India’s outbound airfreight, has declined by more than 20% year-on-year. Rates have also softened as carriers grapple with excess capacity in the face of weak bookings.
Exporters argue that fast-tracking trade pacts with markets such as the EU, the UK, and Gulf states, as well as boosting connectivity through regional hubs, could provide much-needed relief. Meanwhile, airlines are increasingly shifting capacity toward Europe and Southeast Asia, where demand remains comparatively stable.
Analysts warn that if the US slump persists, India’s overall export growth targets for FY2025–26 could come under pressure, particularly for time-sensitive cargo segments.