India’s air cargo and express logistics market is poised for significant expansion, with cargo volumes projected to increase from approximately 3.9 million tonnes in FY2026 to 6.9 million tonnes by FY2030, according to a report by Makreo Research titled India Air Cargo and Express Logistics Market and Forecast to 2031.
The projected growth is being driven by rising pharmaceutical and electronics exports, expanding e-commerce shipments, investments in airport cargo infrastructure and reforms aimed at strengthening transshipment operations. However, the report highlights a major infrastructure utilisation challenge, with India’s airport cargo-handling facilities operating at just 42.12% capacity utilisation in FY2023–24.
India is currently the world’s sixth-largest air cargo market, although air freight accounts for only around 0.06% of the country’s total freight transport activity, measured in tonne-kilometres. Despite its relatively small modal share, air cargo remains critical for transporting high-value and time-sensitive commodities, including pharmaceuticals, electronics, perishables and express shipments.
Makreo Research estimates that India’s air cargo and courier services market recorded a revenue CAGR of approximately 1.30% during FY2023–FY2026E, reflecting a different measure of market development from the projected growth in physical cargo volumes.
Northern India Leads Regional Air Cargo Market
Northern India accounts for approximately 32.32% of India’s air cargo and courier services market revenue, supported by international freight connectivity, manufacturing clusters and growing e-commerce demand.
Delhi Airport handled approximately 0.63 million tonnes of cargo during the first half of FY2027, registering 12.2% year-on-year growth. The country’s air cargo movement remains concentrated around major metropolitan gateways, with Delhi, Mumbai, Bengaluru and Chennai collectively handling around 80% of India’s air cargo in 2024, according to IATA.
Southern India is also strengthening its position. Hyderabad Airport handled approximately 102,000 tonnes of cargo during H1 FY2027, an increase of 5.8% year on year, supported by pharmaceutical exports and other time-sensitive shipments.
The concentration of cargo at established gateways presents opportunities for regional airport development. However, improving capacity utilisation, cargo-handling efficiency and regional connectivity will be essential to expanding throughput beyond metropolitan airports.
Pharmaceutical Exports Drive International Air Freight
Pharmaceutical exports have emerged as a major demand driver for India’s international air cargo market. Exports exceeded USD 30.5 billion in FY2026, with pharmaceuticals accounting for nearly 70% of outbound air cargo shipments. The United States and Europe remain the principal destination markets.
Hyderabad is strengthening its position as a major pharmaceutical and vaccine logistics gateway. In May 2026, the airport commissioned a second cargo terminal featuring a fully temperature-controlled pharmaceutical zone, with an initial annual capacity of 50,000 tonnes and potential expansion to 100,000 tonnes.
The development is expected to strengthen India’s specialised cargo-handling capabilities, particularly for temperature-sensitive pharmaceutical shipments.
E-Commerce Expands Express Logistics Beyond Major Cities
The rapid growth of e-commerce is creating fresh demand for air cargo connectivity beyond India’s major metropolitan centres. Domestic air cargo volumes approached 1.5 million tonnes in FY2026, while Tier-II and Tier-III cities accounted for more than 45% of online shopping demand.
International express logistics also remains strongly export-oriented, with exports accounting for approximately 75–80% of shipments. Daily export consignments reached around 45,000–48,000 by FY2026, compared with approximately 12,000 imports.
Makreo Research expects technology-driven air freight and multimodal logistics networks serving smaller cities to grow by more than 20% annually.
Industry performance reflects this momentum. Delhivery handled 325 million express parcels in Q2 FY2027, registering 32% year-on-year growth, while Blue Dart reported 15% revenue growth and an 85% increase in profit after tax in Q1 FY2027.
New Airport Hubs and Investments Expand Cargo Infrastructure
India’s aviation sector is entering a major investment cycle, with more than USD 170 billion in investments required through 2030. This includes approximately USD 24 billion for airport expansion and USD 150 billion for aircraft orders. An additional INR 25,000 crore is expected to be invested in airport cargo infrastructure over the next five to seven years.
Several major developments are reshaping the country’s air cargo landscape:
- Noida International Airport: Began operations in June 2026 with an initial annual cargo capacity of 200,000 tonnes, expandable to 1.5 million tonnes.
- Navi Mumbai International Airport: Handled 11,853 tonnes of cargo between January and September 2026, including 6,477 tonnes of international freight.
- FedEx: Is developing a 300,000 sq ft automated hub at Navi Mumbai, supported by long-term investment exceeding INR 2,500 crore. The company is also developing a USD 150 million facility in Delhi designed to increase processing capacity from 600 to 5,000 packages per hour.
- Blue Dart Express: Opened a 250,000 sq ft multimodal logistics hub in Delhi in January 2025, with the capability to handle approximately 550,000 shipments daily.
- UPS SCS India: Nearly doubled its Delhi–Cologne air cargo capacity in June 2025 through the deployment of a Boeing 747-8 freighter, strengthening India–Europe freight connectivity.
Capacity Utilisation to Determine the Next Growth Phase
Despite significant investment in airport infrastructure and cargo-handling facilities, improving utilisation will remain a critical priority for India’s air cargo sector.
The next phase of growth will depend not only on adding new capacity but also on converting available infrastructure into higher cargo throughput. Airport operators will need to focus on operational efficiency, regional connectivity and integrated cargo ecosystems, while express logistics companies and freight forwarders will increasingly invest in automation, transshipment efficiency and multimodal networks.
Pharmaceutical and electronics exporters are expected to remain important demand drivers, reinforcing the need for specialised cargo facilities and reliable international air freight connectivity.
With cargo volumes projected to reach 6.9 million tonnes by FY2030, India’s air cargo and express logistics sector is positioned for substantial expansion. The ability to bridge the gap between installed capacity and actual utilisation will be a key factor in determining how effectively the country capitalises on this opportunity.