Bengaluru: At its present compounded annual rate of growth – 5.5 percent – cargo demand in India is expected to boost the airfreight market to 2.8 million tonnes by 2018, according to a recent report by market research analysts at Frost & Sullivan. Most of this growth, however, will benefit foreign-owned, rather than domestic, carriers.
The aggregate demand for air cargo, the analysts concluded, comes from a renewed emphasis on international trade over the last several years and a relaxation of regulations on the amount of foreign direct investment (FDI) allowed in India’s aviation sector.
“The Indian government’s FDI policies have been particularly favorable towards private participants entering the market,” said Srinath Manda, program manager, transportation and logistics practice for Frost & Sullivan. “Major policies fuelling market growth include the allowance for 100 percent FDI in existing airports and under automatic routes, as well as 100 percent tax exemption for airport projects for the next ten years.”
25/02/15 Randy Woods/Air Cargo World
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The aggregate demand for air cargo, the analysts concluded, comes from a renewed emphasis on international trade over the last several years and a relaxation of regulations on the amount of foreign direct investment (FDI) allowed in India’s aviation sector.
“The Indian government’s FDI policies have been particularly favorable towards private participants entering the market,” said Srinath Manda, program manager, transportation and logistics practice for Frost & Sullivan. “Major policies fuelling market growth include the allowance for 100 percent FDI in existing airports and under automatic routes, as well as 100 percent tax exemption for airport projects for the next ten years.”
25/02/15 Randy Woods/Air Cargo World
