e-commerce and fast fashion exports are proving to be pivotal sectors contributing to the rapid growth of India’s air cargo industry. With projections indicating a nearly fourfold increase in air cargo volume by 2043, India’s expanding digital economy and manufacturing capabilities are set to reshape the cargo landscape.
A major catalyst
India’s e-commerce gross merchandise value (GMV) is expected to grow sixfold between 2022 and 2030, driven by rising internet penetration, expanding digital payment systems, and the widespread adoption of online retail platforms, according to the Boeing World Air Cargo Forecast (WACF). With more than 700 million internet users and an increasing shift towards online shopping, particularly in tier-2 and tier-3 cities, the demand for efficient air cargo services has never been more pronounced.
Industry analysts highlight that e-commerce-related shipments are particularly time-sensitive, with consumers demanding faster delivery options that traditional logistics networks struggle to provide.
A rising force
The fast fashion industry is a significant contributor to airfreight growth in India. With major global retailers increasingly sourcing apparel from Indian manufacturers, the demand for expedited shipping solutions has surged. The Make in India initiative and the establishment of Special Economic Zones (SEZs) have further bolstered the country’s manufacturing capabilities, making India a preferred destination for textile and garment production.
India’s textile and garment exports are expected to grow by approximately 8-10 percent annually over the next decade, driven by competitive pricing, high-quality manufacturing, and strategic trade agreements. Air cargo is expected to play a critical role in meeting the stringent delivery timelines required by international fashion brands.
Gaps and recommendations
Despite the promising outlook, challenges remain. India’s air cargo infrastructure continues to face limitations, particularly in regional connectivity. While major airports in Delhi, Mumbai, and Bengaluru have made significant investments in expanding cargo handling capacities, the underutilisation of regional airports remains a critical issue. Additionally, the lack of cohesive infrastructure for last-mile delivery could hinder the potential of the e-commerce and fast fashion sectors.
Boeing’s forecast is that addressing these infrastructure gaps will be essential to sustaining growth. Enhancing connectivity between tier-2 and tier-3 cities, developing dedicated freight corridors, and promoting public-private partnerships (PPPs) will be critical to ensuring seamless trade operations.
Furthermore, favourable policies surrounding freighter conversions, investment incentives, and multimodal logistics integration could accelerate progress. Collaboration between government agencies, private sector players, and international stakeholders will be essential to creating an environment conducive to air cargo growth.
Meeting rising demand
The global freighter fleet will grow by approximately 66 percent over the next 20 years, expanding from 2,340 aircraft in 2023 to 3,900 aircraft by 2043. In India, expanding domestic freighter capacity is a key challenge, particularly given the increasing volume of e-commerce and fast fashion shipments.
The synergy between e-commerce growth and fast fashion exports offers India an unparalleled opportunity to establish itself as a key player in the global air cargo market. However, achieving this potential will require strategic investments in infrastructure, regulatory coherence, and targeted policy support.
As India continues to expand its manufacturing capabilities and digital economy, effective policymaking and enhanced logistics efficiency will be essential to realising ambitious growth targets.
