News / Indian air cargo really flying, powered by a booming ecommerce market

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Indian air cargo volumes are expected to quadruple over the next two decades, propelled by soaring ecommerce demand and manufacturing expansion, according to US aircraft maker Boeing.   

Boeing’s World Air Cargo Forecast 2024-2043 notes that the Indian market is seeing the fastest ecommerce demand traction, about 25% annually.  

“Rising household incomes, high internet penetration and widespread smartphone adoption are powering a booming ecommerce market [in India],” says the the plane-maker.  

“Although still relatively small in volume, compared with established ecommerce markets like China, the US or the EU, Indian volumes are growing faster than almost anywhere else.”

And as the largest air cargo market in South Asia, India would continue to be the primary driver of growth out of the region, it adds.    

“India demonstrates how economic development plans can boost air cargo,” says the report.  

Boeing, which has significantly raised its profile in India in recent years, also expects hi-tech manufacturing — led by electronics, semiconductor and automobile verticals – to drive Indian air cargo flows.  

East Asia, especially China, remains the chief source of imports for South Asian nations and, according to Boeing, this backhaul trade flow could grow exponentially as manufacturing diversifies.  

Boeing also believes roaring air cargo demand could be a boost for India’s long-term ambition to become a developed nation by 2047, for which the government has lined up substantial investments in the aviation and cargo infrastructure sectors.  

“Favourable demographic trends, especially a growing working-age population and improving public health, are priming India for further development,” suggests the report.

India’s freighter fleet is also expanding, tripling to 18 over the past six years, to meet expected growth, with Blue Dart, IndiGo, Pradhaan Air, Quikjet and SpiceJet leading the home-grown dedicated capacity segment.  

Boeing has large-scale aircraft orders from Tata Group-owned Air India and another budding domestic airline, Akasa, which could significantly drive the demand for components and spare parts, longer term.  

Eyeing the potential, Boeing, in partnership with German logistics leader DB Schenker, this year opened a large distribution centre in northern India to offer aircraft spare parts and repair services, claimed to be a first in the country.  

India’s air freight industry stakeholders are also upbeat about the market outlook.  

“With ecommerce demand and faster delivery expectations on the rise, India’s air freight market is projected to reach $17.22bn by 2028, creating significant growth opportunities,” Mahesh Fogla, executive director at Mumbai-based 3PL Patel Integrated Logistics, told The Loadstar. 

“The government’s effort on enhancing airport infrastructure and the addition of new airports will aid the growth,” Mr Fogla added.  

Jitendra Srivastava, CEO of Mumbai-based air cargo forwarder Triton Logistics & Maritime told The Loadstar: “India’s air freight industry is now at a pivotal juncture, with cargo volumes expected to triple by 2030 on the back of various favourable factors.”  

Meanwhile, global express parcel service integrators DHL Express, FedEx and UPS have beefed up their networks out of India in recent months to capitalise on the strong growth potential. India is also one of Amazon Air Cargo’s three global areas with their own ecommerce domestic network, alongside the US and EU. 

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