Indian and international airlines Etihad, Virgin Atlantic, are ramping up cargo operations in India, driven by booming exports, the “China Plus One” strategy, and the rapid growth of ecommerce.
Key export sectors include electronics, pharmaceuticals, and perishables, with companies like DHL predicting a 20% annual growth rate in the industry.
Despite this growth, India’s air cargo penetration remains below the global average, with only 23.9% in FY24 compared to approximately 35% globally. This indicates a significant opportunity for expansion.
Key airports like Kempegowda International Airport in Bengaluru are crucial in this expansion. The airport reported exporting 47,041 metric tonnes of chicken products in FY24, capturing 44% of the perishable cargo market in South India.
Although, Indian carriers, such as IndiGo, are capitalising on this upward trend by expanding their freight operations to meet the rising demand from e-commerce, pharmaceuticals, manufacturing, electronics, and agriculture.
