Indian air cargo in 2025 marked by steady growth, structural reforms and a renewed push toward global competitiveness

India’s air cargo sector closed 2025 on a note of confidence, marked by steady growth, structural reforms and a renewed push toward global competitiveness. With strong policy support and increasing private sector participation, the industry continued to build the foundations required to meet India’s ambition of becoming a leading global logistics hub by 2030.

Policy vision driving sectoral momentum

The National Aviation Policy’s target of achieving 10 million tonnes per annum (MTPA) of cargo throughput by 2030 remained a central guiding force. Throughout 2025, the government intensified efforts to streamline processes, strengthen multimodal connectivity and encourage investment in supporting sectors such as cold chain logistics, maintenance repair overhaul (MRO) services and sustainable aviation initiatives. These reforms helped create a more enabling environment for cargo operators, integrators and airport developers.

Fleet expansion and infrastructure modernisation

One of the defining trends of the year was the expansion of dedicated freighter fleets and operators adding capacity to serve the country’s booming e-commerce market, pharmaceutical exports and high value manufacturing segments. Airports across major metros and emerging industrial clusters continued to upgrade cargo terminals, automation systems and temperature controlled facilities to handle rising volumes more efficiently.

Digitalisation also accelerated, with cargo community systems, AI-enabled tracking tools and paperless documentation becoming more widely adopted. These advancements helped reduce dwell times and improved transparency across the supply chain.

Strengthening India’s position as a global air logistics hub

India made visible progress in positioning itself as a strategic air logistics hub. Enhanced connectivity, improved turnaround times and the integration of technology into cargo operations contributed to a more competitive ecosystem. Stakeholders across airlines, airports, freight forwarders and express operators increasingly aligned their strategies with the government’s long-term vision, signalling a maturing and more coordinated industry landscape.

Challenges that shaped the year

Despite the positive trajectory, 2025 also underscored several structural challenges that require sustained attention:

* Infrastructure bottlenecks: Cargo handling capacity remains uneven across regions, with smaller airports still lacking the infrastructure needed to support high volume or specialised cargo.

* Regulatory complexity: While progress has been made, Customs processes and compliance frameworks continue to require simplification to match global benchmarks.

* Global volatility: Fluctuating fuel prices, shifting trade patterns and geopolitical uncertainties posed risks to cost structures and demand cycles.

* Sustainability pressures: Meeting global green logistics standards will demand significant investment in cleaner technologies, energy efficient infrastructure and sustainable operational practices.

A sector moving in the right direction

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