India Targets 10 Million Tonnes of Air Cargo by 2030 to Boost Logistics Infrastructure

India has set a target to increase its air cargo handling capacity to 10 million metric tonnes by 2030, up from the current level of approximately 3.96 million tonnes. Civil Aviation Minister Ram Mohan Naidu outlined the target while speaking at the groundbreaking ceremony for a new integrated air cargo hub at GMR Cargo City, located at Delhi’s Indira Gandhi International Airport.

The new facility is being developed by Federal Express Corporation (FedEx), which plans to invest about $150 million in the project. Spanning approximately 230,000 square feet, the hub is designed to increase processing capacity from 600 to 5,000 packages per hour once it becomes operational.

A key focus of the government's strategy is addressing the low volume of trans-shipment currently moving through India. According to Minister Naidu, less than 5 per cent of India’s air cargo currently moves via trans-shipment. In comparison, trans-shipment accounts for 75 per cent in Hong Kong, 65 per cent in Singapore, and nearly 60 per cent in Dubai. The Ministry estimates that increasing India’s trans-shipment share to 20 per cent could unlock a potential revenue advantage of up to $5 billion.

To tackle bottlenecks affecting turnaround times and handling costs, the Centre has revised its trans-shipment security framework. Under the revised framework, re-screening on specified routes has been exempted following earlier delays caused by mandatory re-screening.

The government tested a proof of concept on the Chennai-Delhi-Frankfurt route, which reduced average end-to-end transit time from nearly 60 hours down to 17 hours, according to Naidu. This initiative has since been expanded to Copenhagen and London Heathrow, with five additional domestic destinations integrated into the framework. Furthermore, the Ministry is currently working on an Air Freight Stations policy to facilitate off-airport cargo processing and decongest airport terminals.

To support higher volumes and faster processing, the Bureau of Civil Aviation Security (BCAS) is transitioning from conventional 2D X-ray screening to computed tomography explosive detection systems. These upgraded systems are projected to raise screening throughput from around 600 packages per hour to over 2,500 packages per hour.

Highlighting the country's strategic position, Naidu noted that nearly 60 per cent of the world's population can be reached within a four to six-hour flying time from India. The broader policy objective is to strengthen cargo infrastructure, reduce processing times and logistics costs, and transform air cargo into a core component of the Indian economy.

"The push to scale India's air cargo handling capacity to 10 million tonnes by 2030 highlights a crucial step toward strengthening the nation's logistics and supply chain infrastructure. With major private investments like FedEx's $150 million hub in Delhi and regulatory updates to ease trans-shipment bottlenecks, the supply chain ecosystem is aligning to reduce transit times and operational costs. For businesses, particularly in e-commerce, manufacturing, and cross-border trade, improved cargo efficiency and advanced screening systems will significantly enhance speed-to-market and lower logistics overheads." — Dr. Shishir Gupta, Founder & CEO, StartupLanes