Tuesday, January 02, 2018

India the new destination for air cargo

The Indian air cargo segment has been attracting more international cargo operators to country in terms of services, joint ventures, stake holdings etc. The growing cargo volumes, no Indian all cargo or freighter operator, conducive policy and lenient regulatory environment all put together makes it a lucrative market for the international players.

In the beginning of the year 2017, Indian Civil Aviation minister Ashok Gajapathi Raju in an interview to a news agency spoke in length about the tremendous growth potential of the country's air cargo segment. The government in its national civil aviation policy has offered major thrust with an aim to boost air cargo business, especially in the backdrop of rising e-commerce activities and exports.
The setting up of Air Cargo Logistics Promotion Board (ACLPB) by the ministry was a major step to ensure efficiency, reduced cost and improved inter-ministerial coordination to fuel growth.

Harish Shah, CEO of MNC Aviation, adding to the ministers point on the opportunities said, "Huge growth potential exists for the air cargo industry especially with the growing e-commerce traffic within India and across the globe as new market is opening up for the Indian exporters especially in Africa and South America. Existing markets viz Far East, Middle East, Europe and North America continue to grow. Pharmaceuticals, auto ancillaries and fashion products will continue to play major role in the growth of the air cargo industry. The registered double-digit growth in air cargo justifies the growing potential."

A significant achievement for India last year was the opening of the air cargo route between Afghanistan and India circumventing Pakistan. The first service between Kabul and New Delhi was inaugurated in June flowed by Mumbai service in December.
01/01/18 Renjini Liza Varghese/Stat Trade Times