The Indian cargo industry needs to grow at a rate of about 12.9 per cent every year from 2018 to 2027 to achieve National Civil Aviation Policy (NCAP 2016) vision of reaching cargo volumes of 10 million tonnes (MT) by 2027, noted a recent ASSOCHAM-Auctus Advisors joint study.
“There is an urgent need to uplift Indian cargo market to achieve the overall vision of the aviation ministry,” suggested the knowledge report on Civil Aviation and Cargo, conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) jointly with consultancy firm Auctus Advisors.
The report noted that 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 MT and 2.1 MT respectively resulting in total air cargo traffic of 6.8 MT.”
The study also highlighted various issues confronting aviation logistics sector in India – 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.