• By 2030, non-metro cities are projected to handle up to 25 percent of India’s air cargo throughput, signalling a structural shift from metro concentration towards a distributed model supported by US$25 billion in recent investment, 12 percent annual warehousing absorption growth, and expanding multimodal connectivity under initiatives such as PM Gati Shakti and the National Logistics Policy.
• Emerging regional hubs — including Indore, Nagpur, Lucknow, Kochi and Coimbatore — are aligning sector-specific manufacturing strengths with upgraded Grade A warehousing, cold-chain capability and integrated air cargo systems, contributing to domestic cargo growth of 10.2 percent year-on-year in 2024.
• e-commerce penetration beyond the top metros, expanding 3PL footprints and policy-led cost reduction targets are decentralising freight origins, easing congestion at primary gateways and positioning India to evolve into a more integrated, regionally balanced airfreight and trans-shipment ecosystem.

By 2030, non-metro cities in India could contribute up to 25 percent of the country’s air cargo throughput — a dramatic shift from today’s metro-centric model. While Delhi, Mumbai, Bengaluru, and Chennai still handle most freight, Tier-2 and Tier-3 cities are emerging as new logistics and air cargo hubs.

JLL’s Beyond the Metros report highlights nine non-metro cities — Jaipur, Lucknow, Indore, Nagpur, Coimbatore, Kochi, Bhubaneswar, Guwahati, and Chandigarh/Tricity — hosting 70 million sq ft of office space and 80 million sq ft of warehousing. Over the past five years, these cities have attracted US$25 billion in logistics, real estate, and manufacturing investments, with warehousing absorption growing 12 percent annually.

Drivers of this shift include diversified manufacturing under India’s Production Linked Incentive (PLI) schemes, e-commerce growth into smaller cities, and PM Gati Shakti multimodal corridors connecting airports, highways, and industrial parks. As Sandeep Sethi, Managing Director at Work Dynamics, JLL India, notes: “India’s logistics map is no longer defined by the metros alone. Air connectivity is central to that transition.”

Regional cities become central hubs

The decentralisation of logistics is reshaping air cargo flows. India’s National Air Cargo Policy Framework aims to triple cargo capacity from 3.3 million tonnes in 2024 to 10 million tonnes by 2030. Regional airports are central to this effort:

Indore serves central India’s pharma and engineering sectors.

Nagpur is being developed under the MIHAN project, integrating aviation, warehousing, and industrial ecosystems.

Lucknow leverages defence and electronics parks for specialised logistics.

Kochi and Coimbatore expand on seafood, textile, and automotive exports with strong regional air networks.

Domestic air cargo volumes grew 10.2 percent year-on-year in 2024, outpacing global growth of 5.4 percent, much of it from these emerging hubs.

Growth engines

Grade A warehousing now represents 45 percent of supply in these cities, featuring cold-chain infrastructure, CEIV-Pharma certification, and integrated air cargo handling systems. This mirrors global models where smaller airports feed larger hubs, shortening first-mile distances, easing metro congestion, and supporting freighter-linked 3PL operations.

e-commerce is a key driver: over 45 percent of online orders in India now originate outside the top eight metros. Leading 3PL operators such as DHL, Delhivery, Mahindra Logistics, and Blue Dart have expanded into these cities, driving 22 percent year-on-year growth in warehouse leasing and enabling small-parcel consolidation and regional redistribution.

Policy and investment enablers

Government initiatives like UDAN, the National Logistics Policy, and PM Gati Shakti are integrating regional airports into multimodal networks. Reducing logistics costs from 13–14 percent of GDP to 8–9 percent by 2030 supports broader catchment areas and more efficient air cargo operations. Institutional investment is rising, with US$7 billion entering warehousing and logistics in FY2024.

The strategic takeaway

The rise of logistics-enabled secondary cities diversifies freight origins, reduces congestion at metros, and positions India as a regional air cargo and trans-shipment hub. Integration of airport infrastructure, bonded warehousing, customs digitisation, and freighter connectivity will define competitiveness in the coming decade.

India’s airfreight future will no longer start and end in Delhi or Mumbai. Instead, it will span a dynamic network of regional economies, creating a distributed and integrated logistics ecosystem that underpins the country’s next wave of industrial and trade growth.

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