India’s air cargo market is the second fastest growing in the world and the boom is set to continue for the next decade and as half as a government sees it as key diver for its ‘Make in India initiative’.
In 2015/16it is forecasted to surge by around 6.7 per cent with the domestic market rising 6.3 per cent and the international sector by 6.9 per cent .
The government has revealed details of a new air cargo policy to develop the industry, which includes developing cargo hubs, encouraging cargo villages, reducing dwell time to 48 hours for imports, shifting to paperless cargo process, introducing 24/7 customs for processing and handling of right , developing free trade zones and providing space on long term leases to express cargo freighters.
Other plans would benefit firma co-located at airports as the governments is proposing giving then ‘infrastructure status’ and a 10-year tax break’ .
Speaking at air cargo India at the Grand Hayat Hotel at in Mumbai last week the government’s senior advisor for the ministry of Civil Aviation Renu Singh Parmar says the potential of the airfreight industry is “huge” and labels it the land of opportunity.
Parmar says India’s cargo tonnage throughout was 2.58 million tonnes in 2014/15 but in 2020/12 it will be 4.2 million tonnes, before rising to 5.25million tonnes in 2023/24 and 8.75 million in 2030/31.
She explains India’s market is being driven by the developing population, growing consumer demand and expanding manufacturing industry, and comes Parmar says, despite exports declining but expansion is being fuelled by imports .
Much of the market development , Parmar forecasts will come through e-commerce, which will reach $36 billion in India in 2016, up from $16 billion in 2014 and it will hit $100 billion by 2020.
Economic forecasters say India will be the largest economy in the world by 2030, and surpass China.
Gross domestics product growth was 7.5 per cent in 2015, which was above china 6.7 per cent making India fastest growing economy in the world.