India’s Air Cargo Market Set to Quadruple by 2043, Driven by E-commerce and Manufacturing Growth, Says Boeing

The forthcoming fourfold increase over two decades in India's air cargo volumes, as predicted by Boeing's World Air Cargo Forecast 2024-2043, stems from swelling global e-commerce demand and increased manufacturing. The e-commerce market, too, is flourishing in India, promising around 25% growth in demand through increased household incomes; internet penetration, and proliferation of smartphones.

India's e-commerce volumes may not match those found in mature markets such as China, the US, or the EU, but the rate of growth is among the fastest in the world. Boeing puts India above all other nations in South Asia, characterized as the air cargo market, and additionally, it states the country will continue to be a significant driver of growth in the region.

The prognostications also point at the burgeoning manufacturing sector in India, especially in the fields of electronics, semiconductors, and automobiles, as largely productive areas of demand for air cargo. With the diversification of manufacturing, particularly with a focus on China, a major source of imports, the backhaul trade flow from East Asia to India will see a dramatic increase in demand.

India's increasing air cargo demand, which Boeing views as a progressive issue, is expected to take the country under its developmental efforts towards becoming a developed nation by 2047. Investments in aviation and cargo infrastructure by the Indian government are expected to give strength to this dimension.

Up-scaling the dedicated freighter fleet of India is swift, having increased thrice from just 6 to 18 in the past six years. Big players like Blue Dart, IndiGo, Pradhaan Air, Quikjet and SpiceJet account for growth in domestic dedicated capacity. Large aircraft orders from Tata Group-owned Air India and emerging Akasa airline are set to spur further demand in air cargo services.