INDIA's air cargo industry needs to grow by 12.9 per cent per annum to achieve the National Civil Aviation Policy's target of generating 10 million tonnes of cargo per year by 2027.
However, a study has found that India's international and domestic air freight is projected to grow at an overall compounded annual growth rate (CAGR) of 8.2 per cent.
'Considering this trend to continue till 2027, projected international and domestic air cargo will be 3.6 million tonnes and 2.1 million tonnes respectively, resulting in total air cargo traffic of 6.8 million tonnes,' wrote the authors of a joint study by Assocham and consultancy firm Auctus Advisors, reported Mumbai's Zee Business.
'There is an urgent need to uplift Indian cargo market to achieve the overall vision of the aviation ministry,' the study said.
The report suggested implementing a rating system for cargo terminals to motivate operators to improve infrastructure and quality of services.
The study also identified an urgent need to create adequate freight carrying capacity within India's air network through the development of new cargo terminals and expansion of existing ones, in addition to undertaking pro-active measures to identify tier two and three cities for setting up a common user domestic cargo terminal (CUDCT).
The authors of the report highlighted various issues confronting the aviation logistics sector in India. They said the lack of enabling infrastructure, lack of automated material handling systems, high manual intervention in the processes and inadequate skilled manpower are some of the key areas where Indian air cargo industry lags global peers.
On development of air freight station (AFS), the study said there is an urgent need for a clear cut, well-defined policy to initiate AFS ecosystem which would help in stimulating export-import trade.
'Promoting concept of cargo villages and linking them with international airports is an ideal way to boost air freight traffic, improve delivery and create many job opportunities. Besides, cargo villages may also be linked to free trade zones to foster goods' manufacturing for international markets which would give a boost to 'Make in India,' scheme of the government,' added the report.
However, a study has found that India's international and domestic air freight is projected to grow at an overall compounded annual growth rate (CAGR) of 8.2 per cent.
'Considering this trend to continue till 2027, projected international and domestic air cargo will be 3.6 million tonnes and 2.1 million tonnes respectively, resulting in total air cargo traffic of 6.8 million tonnes,' wrote the authors of a joint study by Assocham and consultancy firm Auctus Advisors, reported Mumbai's Zee Business.
'There is an urgent need to uplift Indian cargo market to achieve the overall vision of the aviation ministry,' the study said.
The report suggested implementing a rating system for cargo terminals to motivate operators to improve infrastructure and quality of services.
The study also identified an urgent need to create adequate freight carrying capacity within India's air network through the development of new cargo terminals and expansion of existing ones, in addition to undertaking pro-active measures to identify tier two and three cities for setting up a common user domestic cargo terminal (CUDCT).
The authors of the report highlighted various issues confronting the aviation logistics sector in India. They said the lack of enabling infrastructure, lack of automated material handling systems, high manual intervention in the processes and inadequate skilled manpower are some of the key areas where Indian air cargo industry lags global peers.
On development of air freight station (AFS), the study said there is an urgent need for a clear cut, well-defined policy to initiate AFS ecosystem which would help in stimulating export-import trade.
'Promoting concept of cargo villages and linking them with international airports is an ideal way to boost air freight traffic, improve delivery and create many job opportunities. Besides, cargo villages may also be linked to free trade zones to foster goods' manufacturing for international markets which would give a boost to 'Make in India,' scheme of the government,' added the report.