Air cargo movement across Indian airports grew by 6.2 per cent in FY26 to 39.63 lakh tonnes, compared with 37.33 lakh tonnes in the previous fiscal, reflecting underlying resilience despite global disruptions.

However, growth moderated from the robust 10.5 per cent expansion recorded in FY25, according to Airports Authority of India data.

The impact of the West Asia crisis became evident in March, when cargo volumes declined by about 6 per cent to 2.08 lakh tonnes from 2.21 lakh tonnes a year earlier, largely due to suspension of flights to key transshipment hubs in the region. Industry sources said that, but for the disruption, overall growth in FY26 could have reached 8–10 per cent.

Delhi continued to be the country’s largest air cargo hub during the year. Chennai, however, emerged as the fastest-growing airport, recording an 11.7 per cent rise in cargo volumes, driven primarily by shipments of mobile phones, electronics and engineering goods.

Hyderabad airport strengthened its position among the top five cargo hubs, widening its lead over Kolkata to more than 14,000 tonnes in FY26, compared to a narrow margin of just 215 tonnes in the previous year.

Industry experts attribute the growth momentum across India to the government’s Production Linked Incentive (PLI) scheme, particularly for electronics manufacturing.

J. Krishnan of S Natesa Iyer Logistics LLP noted that exports such as mobile phones depend heavily on imported components from China, Taiwan and Korea, making air freight the preferred mode due to compressed delivery timelines.

Despite the positive trend, experts caution that global economic uncertainty and geopolitical risks could weigh on near-term growth. “An aggressive policy push is needed to increase India’s share in global trade. The role of air cargo will be critical over the next decade,” Krishnan said.

According to the March decline underscores the sector’s vulnerability to geopolitical shocks, particularly disruptions along West Asia routes that serve as major cargo transit corridors.

At the same time, domestic cargo traffic grew by a healthy 7.4 per cent, signalling strengthening internal demand and improving supply chain maturity. “Without external shocks, near double-digit growth was achievable, indicating robust underlying demand,C.K. Govil, CMD of Activair Airfreight India Pvt Ltd, said.

Dinesh Krishnan, Chairman of the Air Cargo Agents Association of India (Southern Region), said the West Asia crisis has affected industrial output and the broader supply chain, impacting both capital investments and consumer demand. While investments in the sector continue, they are being made with “cautious optimism” in the current environment.

“The commodity mix itself tells an encouraging story — pharmaceuticals, e-commerce, engineering goods, and spare parts have supported stable year-round uplift, and we are now seeing newer categories gaining momentum, Jagannarayan Padmanabhan, Senior Director, CRISIL Limited said.

The cargo mix is shifting toward high-value, time-sensitive shipments like semiconductors, automotive components, and consolidated B2B e-commerce goods — categories that demand precision logistics and are stickier in nature. Air freight exports to the US alone are about 27 per cent higher than 2019 levels, driven primarily by industrial equipment, parts, and mobile phones, he said.

Published on April 27, 2026