NEW DELHI: Domestic cargo has registered a growth of 8.0% at a CAGR during FY07-17, whereas international cargo grew at 6.2% annually during the same period, according to an ASSOCHAM-Yes Bank joint study.
In India, Air Trade to GDP ratio has doubled from 4% to 8% in the last twenty years. Air Cargo contributes about 20% of airlines revenue. Air Cargo industry involves a wide variety of service providers and employs nearly 70,000 thousand persons in the Country, reveals the joint study on ‘Civil Aviation’ released recently at New Delhi.
Air Cargo should be treated at par with other Logistics sector like Roads which is subject to 5% tax rate. It is recommended that air cargo tax rate may be reduced from 18.0% and considered for a lower tax bracket.
Indian express cargo industry provides fast, reliable, on demand, integrated and door to door (including customs clearance and duty and tax payments) is likely to grow manifold in the coming years. The growth of the industry will be driven by the current major customer segments, namely auto components, banking & finance, garments, pharmaceuticals, IT hardware and mobile phones, e-commerce etc.
As per IMF forecast, GDP growth in India is forecast to grow at an average of 7.5 precent-8.2 percent during FY18-21 and thus Air Cargo could be at the centre of supply.
In order to promote growth in air cargo by way of cost reduction, efficiency improvement and better inter-ministerial coordination, Air Cargo Logistics Promotion Board (ACLPB) and AAI Cargo Logistics & Allied Services (AAICLAS) have been formed. AAICLAS focus is on three verticals (a) air cargo handling and allied services, (b) warehousing and contract logistics and (c) air cargo road feeder and air freight stations. Creating AAICLAS would bring multiple advantages as there is lot of activities on the cargo front.