Overview of India's Air Freight Sector
India's air freight sector is experiencing growth driven by increased premium shipments overseas, particularly in pharmaceuticals and smartphones. Exporters are focusing on reliability and speed over costs due to unpredictable tariffs and trade barriers. Between April and September in FY26, international freight traffic rose by 4.1%, domestic by 5.9%, and total freight by 4.8% compared to the previous year.
Global Context and Trade Patterns
- The World Bank revised its 2025 global growth forecast to 2.3% due to trade tensions and policy uncertainty.
- Asia-Pacific airlines saw a 6.8% increase in cargo demand in September, with a 4.8% increase in capacity.
- Demand on North America-Asia routes has declined due to US tariff policies and the end of de minimis exemptions, whereas cargo flow within Asia and between Asia and Europe, Africa, and the Middle East is increasing.
Shift in India's Export Mix
Air cargo has become the preferred mode for high-value, time-sensitive shipments due to a structural shift in India's export mix.
Pharmaceutical Exports
- Air freight is crucial for transporting vaccines, injectables, and specialty formulations that require temperature control.
- Critical consignments, such as injectables for critical care or cancer treatment, now primarily use air transportation.
- Pharmaceutical exports grew by 7.3% year-on-year to $12.76 billion from April to August 2025.
Electronics Exports and Smartphones
- India's electronics exports increased by 41.9% to $22.2 billion from April to September 2025, with smartphones rising by 58% to $13.38 billion.
- Major companies like Apple and Samsung are leading the shipment of smartphones to the US.
Other High-Value Exports
- Gems, jewellery, precious metals, and perishables like flowers, seafood, and fruits are also increasingly transported by air.
- Luxury goods, specialised machinery, and automotive components are part of the air freight mix.