Terminal dev’t key for India: Frost & Sullivan
A new report from Frost & Sullivan on India’s air cargo market has concluded that the development of common user cargo terminals and perishable cargo storage facilities represent key areas of opportunity.
April 1, 2015
A new report from Frost & Sullivan on India’s air cargo market has concluded that the development of common user cargo terminals and perishable cargo storage facilities represent key areas of opportunity. According to the Strategic Analysis of Growth Opportunities in Indian Air Cargo Market, the total market opportunity for air cargo services in the country amounted to 2.26 million tonnes in FY 2014 and is estimated to reach 2.8 million tonnes by FY 2018 at a compound annual growth rate of 5.5 per cent.
Increased aggregate demand due to encouraging international trade and gross domestic product (GDP) trends has been the primary driver of air cargo services in India, the report noted. The country’s merchandise export and import registered a double-digit average annual growth rate of 9.5 per cent during the fiscal year (FY) 2009-2013 period, while GDP grew at a compound annual growth rate of more than six per cent within the same timeframe, it said.
“The relaxation of the cap on foreign direct investment (FDI) in the aviation sector has given a strong thrust to the air cargo market,” said Srinath Manda, program manager, Transportation & Logistics Practice, Frost & Sullivan. “The Indian Government’s FDI policies have been particularly favorable towards private participants entering the market.