• India’s air cargo sector shows resilient growth despite global trade uncertainties, with DHL Express India maintaining profitability and capacity through diversified sourcing, digital tools, and strategic infrastructure investments
• DHL has expanded operations across major and regional hubs, increased sorting capacity, renewed its fleet including electric vehicles, and improved connectivity to Tier-2 and Tier-3 cities, enabling faster deliveries and greater SME participation
• Digital platforms and regulatory integration streamline compliance and shipment efficiency while growing e-commerce in smaller cities drives demand for direct routes, flexible services, and regional network development, strengthening India’s global trade competitiveness

India’s air cargo sector is navigating a period of adjustment as global uncertainties—from tariff changes to evolving sourcing patterns—intersect with expanding logistics capacity and digital innovation. Few companies offer a clearer view of these shifts than DHL Express India. Its leadership describes 2025 as a year marked by “stability, resilience, and targeted investment,” even amid a challenging macroeconomic environment.

In an interview with Air Cargo Week, R. S. Subramanian, Senior Vice-President South Asia and Managing Director of DHL Express India, shared how the company’s performance, network expansion, and digital initiatives are shaping air express logistics in one of the world’s fastest-growing cargo markets.

“We recently announced our Q3 global results, the fourth consecutive quarter of positive performance,” Subramanian noted, highlighting sustained profitability, capacity growth, and infrastructure investments across India.

As India’s air cargo volumes approach the Ministry of Civil Aviation’s target of 10 million tonnes by 2030, DHL’s perspective serves as a barometer for how operators are responding to policy shifts, re-sourcing trends, airport constraints, and growing demand from Tier-2 and Tier-3 regions.

Navigating global trade uncertainty

India’s macroeconomic fundamentals have remained relatively strong, but global tariff negotiations and changing trade regulations have introduced challenges for exporters and logistics operators.

“Tariff changes are difficult, especially for sectors integrated into global supply chains,” Subramanian acknowledged. “Yet Indian companies have adapted quickly, using diversified sourcing and careful inventory planning.”

He also noted the impact of new US de minimis rules on small and medium exporters. While these regulations add compliance burdens, they have not significantly slowed India’s export growth. According to Subramanian, digital tools and air express networks have helped SMEs maintain momentum despite these hurdles.

India–China connectivity: Opportunity, not dependency

The resumption of scheduled flights between India and China has reignited debate about reliance on Chinese supply chains. Subramanian rejects the term “dependency.”

“China sourcing has always been an opportunity. It allows Indian businesses to stay competitive while scaling operations,” he said.

For air cargo operators, renewed routes expand capacity and improve reliability for electronics, machinery, textiles, and e-commerce shipments. IATA data indicates that over 35% of India–China trade by value moves by air, highlighting the significance of predictable connectivity.

Expanding networks and capacity

DHL’s expansion reflects both market opportunity and infrastructure pressure. Over the past five years, the company has increased capacity at Delhi, Bengaluru, and multiple regional hubs.

“At Delhi airport alone, we operate three facilities. Bengaluru now has a 125,000 sq ft gateway for South India. Overall, we serve 39 locations directly,” Subramanian explained.

Fleet renewal, including a growing share of electric vehicles, and expanded sorting capacity signal that India’s domestic air express market is evolving toward faster deliveries, regional connectivity, and higher SME participation. These changes also create new demands for airport terminals, ground handling, and customs processes designed for frequent B2C and B2B shipments.

Digital tools as operational backbone

Digitalisation now underpins air express efficiency. Subramanian emphasized the importance of data and regulatory integration:

“Each international shipment requires nearly 100 data points. Today, all our bills are electronic—no physical documents. Everything moves digitally.”

Platforms like MyGTS provide exporters with information on tariff rules, classification codes, and costs across 200+ countries. Integration with India’s DGFT portal enables SMEs to access these tools freely, streamlining compliance and speeding up shipments.

Tier-2 and Tier-3 e-commerce driving demand

e-commerce growth in India’s smaller cities is reshaping domestic air express patterns.

“Reaching Tier-2 and Tier-3 markets is essential. Companies that serve these areas effectively capture the market,” Subramanian noted.

For operators, this trend requires more direct routes to secondary airports, later shipment cut-offs, and integrated services capable of handling complex, high-frequency logistics.

A sector in transition

Looking ahead to 2026, Subramanian described logistics as a sector still defining its future.

“Infrastructure and policies are improving, but there’s room for further simplification. Logistics companies are critical to helping Indian businesses compete globally,” he said.

As India prepares to host international logistics stakeholders in Mumbai, the air cargo industry appears poised for its next phase—one shaped by regional connectivity, SME-focused networks, and continued investment in both infrastructure and digital capabilities. Resilience, Subramanian concluded, has evolved from a defensive strategy into a core competitive advantage.