The tariff benefits
cover a broad range of products, including textiles and apparel,
pharmaceuticals, engineering goods, marine products, electronics, automotive
components, chemicals, gems and jewellery and perishables. These commodities
are particularly suited to airfreight when speed, reliability and product value
are critical. The potential impact is
already visible in the existing India-UK air cargo market. Heathrow handled
more than 75,000 tonnes of import and export cargo with India during the first
half of 2026, making India the airport’s second-largest cargo market by
tonnage. Industry stakeholders expect CETA-driven trade growth to add
incremental volumes to this established corridor. Bengaluru is another key gateway, with the
BLR-UK trade lane currently handling around 1,200 metric tonnes of air cargo
per month. The cargo mix includes pharmaceuticals, high-tech products,
engineering goods, aerospace components, automotive products, fashion and
perishables.
Airline capacity is also expanding. IAG Cargo is
adding a third daily London Heathrow-Delhi service from September 19, taking
its London Heathrow-India capacity to 70 weekly services, compared with 56 in
2025. Increased frequencies to Mumbai and Bengaluru will further strengthen
available belly-hold capacity. However,
logistics companies caution that tariff reductions alone will not immediately
translate into higher cargo volumes. Exporters still need to adapt sourcing and
production arrangements, meet rules-of-origin requirements, complete
documentation and secure sufficient transport capacity. The CETA has already seen significant
initial trade activity, with more than 50 export consignments worth over $140
million flagged off from Indian ports, airports, ICDs, SEZs and factories on
the first day of implementation. The shipments included electronics,
pharmaceuticals and gems and jewellery.
With bilateral
trade targeted to reach $100-120 billion by 2030, the agreement could gradually
diversify and expand the India-UK airfreight market, particularly for
high-value, time-sensitive and premium consumer goods.