India’s air cargo industry is expected to double its growth in the current fiscal on the back of increased demand and trade momentum, according to senior officials.
President of the Air Cargo Agents Association of India (ACCAI) J Krishnan said in the previous financial year, the growth was lower at six per cent due to global downturn which had an adverse impact on the Indian air cargo industry.
“Things have changed. There is positive growth this year”, he said at the three-day, 37th annual convention of ACCAI, which concluded here yesterday.
In 2010-11,the industry is expected to grow 12 per cent to 14 per cent as intra-Asia trade is gaining a lot of momentum, contribution from Special Economic Zones is increasing and there is pick-up in demand from traditional markets, where inventories had dried up, Mr. Krishnan said.
Air cargo in India accounts for six per cent to seven per cent of the freight in terms of tonnage but 35 per cent in value, he said.
Mr. Krishnan said the proposed GST regime bodes well for the air cargo industry as it simplifies the tax structure but added that security concerns (in terms of air cargo) are posing a major challenge.
The event saw speakers from various ministries such as Aviation, Commerce and Finance, as well as those from sectors, including automobile, retail and logistics.