‘India needs more corridors & freighters for cargo movement’

Air cargo and logistics sectors have taken giant strides in the world. In 2023-24, the total cargo handled rose to 3.36 million tonnes from 2.47 million tonnes in 2020-21, says Kinjarapu Ram Mohan Naidu, Union Civil Aviation Minister, at the recent Global Aviation and Air Cargo Summit, held by PHDCCI.

Akash Tyagi

Kinjarapu Ram Mohan Naidu, Union Minister of Civil Aviation, said, “In the past decade, India has witnessed remarkable growth and development in the air cargo sector. From 74 airports in India in 2014, the number has gone up to 157.  This speaks volumes of how determined the ministry is to elevate the aviation and cargo sector in the country.”

“The country’s air cargo sector is experiencing a transformatory boom. It may be noted the total cargo handled increased steadily from 24.7 lakh metric tonnes in 2020-21 to anticipated 33.6 lakh metric tonnes in 2023-24. Recognising the potential of air cargo, we have embarked on development of dedicated air freight corridors, implementation of digital processes, such as e-airway bills and investments in the state-of-the-art cargo terminals. Our goal has always been to make India a global cargo hub by enhancing connectivity, reducing TAT and improving efficiency,” he added.

Emphasising the need for more freighters as most of the cargo in India is being carried out in bellies of the aircraft, the minister said, “We must think why we do not have enough freighters. Most of the cargo that we have today is going by aircraft belly only. It obviously has its own challenges. Now, we must move into the idea of having our own freight corridors, freight carriers, at least between the metropolitan cities so that there is a network created in terms of air cargo, and a system that is being handled.” In addition to the cargo industry, the minister highlighted major aspects of Maintenance, Repair and Overhaul (MRO) sector and how India is transforming into a global MRO hub as well.

Naidu said, “This sector has witnessed significant growth. India has the potential to become an MRO hub, and we are taking decisive steps to move into that direction by rationalising taxes, providing incentives and developing infrastructure. We are promoting domestic and international players to invest in our local MRO industry. Also, we have got new MRO norms, which has abolished royalties and built in transparent system for land allotments for MROs at airports managed by AAI. Also, 100 per cent FDI is permitted via automatic route for the MRO industry.”

“The ministry has paved the way for development of new cargo terminals and logistics parks, which will play an important role in India’s transformation as a leading player in cargo industry. Also, the implementation of revised Open Sky policy, investment in technology, customs simplification, and tax breaks, all these measures collectively have helped India to achieve tremendous growth in the air cargo industry and have given it a realistic chance of achieving the government target of 10 MMT by 2030,” he concluded.

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