India’s air cargo sector recorded a steady yet moderated growth of 6.2 per cent in FY26, with total volumes reaching 39.63 lakh tonnes, up from 37.33 lakh tonnes in the previous fiscal, according to data from the Airports Authority of India. The expansion reflects underlying resilience in the sector despite a challenging global environment.
However, the growth pace slowed compared to the robust 10.5 per cent rise witnessed in FY25, indicating the impact of external headwinds on cargo movement.
The effects of geopolitical tensions, particularly the ongoing West Asia crisis, became evident in March. Cargo volumes declined by around 6 per cent year-on-year to 2.08 lakh tonnes from 2.21 lakh tonnes, largely due to disruptions in flights to key transshipment hubs in the region. Industry sources suggest that in the absence of such disruptions, overall growth in FY26 could have reached between 8 and 10 per cent.
Among airports, Delhi retained its position as India’s largest air cargo hub during the year. Meanwhile, Chennai emerged as the fastest-growing airport, registering an impressive 11.7 per cent increase in cargo volumes, driven by strong shipments of mobile phones, electronics, and engineering goods.
Hyderabad also consolidated its standing among the top five cargo hubs, widening its lead over Kolkata to more than 14,000 tonnes in FY26, a sharp increase from a marginal gap of just 215 tonnes in the previous year.
Industry experts attribute the sector’s sustained momentum to policy support such as the government’s Production Linked Incentive (PLI) scheme, particularly in electronics manufacturing. This has significantly boosted high-value exports that rely heavily on air freight.
J. Krishnan of S Natesa Iyer Logistics LLP noted that export categories like mobile phones are dependent on imported components from countries such as China, Taiwan, and South Korea, making air freight the preferred mode due to tight delivery timelines.
Despite the overall positive trajectory, experts caution that global economic uncertainty and geopolitical risks could weigh on near-term growth. They emphasize the need for a more aggressive policy push to enhance India’s share in global trade, with air cargo expected to play a critical role in the coming decade.
Domestic cargo traffic, however, remained a bright spot, growing by 7.4 per cent, signalling strengthening internal demand and improving supply chain maturity. C.K. Govil, CMD of Activair Airfreight India Pvt Ltd, noted that near double-digit growth was achievable in the absence of external disruptions, underscoring robust underlying demand.
Dinesh Krishnan, Chairman of the Air Cargo Agents Association of India (Southern Region), highlighted that the West Asia crisis has had a broader impact on industrial output and supply chains, affecting both capital investments and consumer demand. He added that investments in the sector continue, albeit with cautious optimism.
According to Jagannarayan Padmanabhan, Senior Director at CRISIL Limited, the evolving cargo mix paints an encouraging picture. Sectors such as pharmaceuticals, e-commerce, engineering goods, and spare parts have provided stable year-round volumes, while newer categories are gaining traction.
The shift toward high-value, time-sensitive cargo — including semiconductors, automotive components, and consolidated B2B e-commerce shipments — is becoming more pronounced. These categories demand precision logistics and offer greater long-term stability.
Notably, air freight exports to the United States are now about 27 per cent higher than 2019 levels, driven largely by industrial equipment, components, and mobile phone shipments, reflecting India’s growing integration into global supply chains.
