The rising opportunity in air cargo services
The air cargo services sector is one of the fastest growing segments of the Indian logistics sector. The share of air cargo services in the domestic logistics sector in India was earlier negligible by global standards due to various factors such as cost and infrastructure. However, all this is set to change in the next 3-4 years. This is expected to be led by a robust growth of the Indian economy. Liberalization policies of the aviation sector are also expected to help matters for the air cargo services sector.
Recent permission given to foreign airlines to own 74% stake in Indian cargo airlines is also expected to give a further boost to the air cargo services market in the country. Such a move is likely to bring in the much-needed capital and global best practices to the Indian air cargo services industry.
The government is also showing proactiveness towards the sector, which will further aid its long term prospects. The government is also aiding the sector’s growth by working towards a plan to set up the required amenities and infrastructure. It is also helping in the establishment of multi-modal cargo hubs for quick and efficient transportation of cargo.
In India, Mumbai, Delhi, and Chennai have been the hubs for international cargo traffic. Now with the development of supporting infrastructure in the new airports of Bangalore and Hyderabad, these regions are also expected to experience higher traffic rates. This is likely to give a boost to companies providing air cargo services in these regions.