Rapid growth of the e-commerce sector is expected to boost India’s domestic air cargo industry with a growth forecast of 6.9 per cent per year over the next two decades, says Boeing India and South Asia President Salil Gupte.

Speaking to businessline, “The growth is driven by various factors, including the overall growth of the Indian economy and increased demand for air cargo transportation,” Gupte said.

Besides, he pointed out that the expansion of India’s e-commerce sector is contributing to the demand for “efficient and reliable” logistics and transportation solutions. 

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“This has led to the entry of cargo carriers into the Indian market that are operating a range of freighters, including the Boeing ‘737-800 Boeing Converted Freighter (BCF), to cater to the growing air cargo services demand,” Gupte said.

Furthermore, government reforms like the nationwide GST have bolstered air freight demand by simplifying goods movement.

Accordingly, India’s dedicated freighter fleet has nearly tripled over the past six years, from a fleet size of six 757 freighters in 2017 to 18 freighters, including the 737-800BCF, in 2024. 

“We expect to see continued growth and activity to meet the Indian government’s stated goal of transporting 10 million metric tonnes of air freight in 2030, including the eventual need for larger, widebody freighters like the Boeing 777 freighter and 777-8 freighter,” he said.

Talking about the aerospace major’s BCF (passenger jet to freighter conversion business), he cited that approximately half of the global demand for conversions is expected to come from the regions of Asia and Africa, including India. 

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“This is driven by the rapid expansion of e-commerce and the electronics manufacturing industry, which has revolutionised customer expectations and supply chain needs,” he said.

In 2023, Boeing partnered with GMR Aero Technic to establish a Boeing Converted Freighter line in Hyderabad. The collaboration added to Boeing’s investments to support the growth of cargo and help expand complex aircraft modification capabilities and Maintenance, Repair and Overhaul (MRO) in India.

“Our partnership with GMR Aero Technic supports the anticipated growth of the cargo sector in the region,” added Gupte.

On the global e-commerce revenues, Gupte said, that they are projected to reach more than double the pre-pandemic levels by 2026, relying heavily on air cargo in emerging markets without well-established ground and postal networks. 

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“The rise of high-end electronics manufacturing in India, such as smartphones and wearables, along with other high-value-added manufacturing, like semiconductors, is creating opportunities for air cargo growth in the future,” he said.

According to Boeing’s World Air Cargo Forecast released in November, the aircraft manufacturer projects India’s air cargo volume to quadruple over the next 20 years, with a compound annual growth rate (CAGR) reaching seven per cent.

As per the forecast report, India’s air cargo market is set to play a key role in the country’s economic growth. With booming pharmaceutical exports, fast-growing e-commerce, and expanding manufacturing, air cargo is expected to grow fourfold in the next 20 years. 

Backed by government investments in aviation and cargo infrastructure, the report said that the sector will help India connect to global markets and support its goal of becoming a developed nation by 2047.