The cargo sector is yet to see robust expansion despite high growth potential.
New Delhi: The country's air cargo sector is projected to grow at over 9 per cent in the next few years, Civil Aviation Minister Ashok Gajapathi Raju said today. Noting that various initiatives are being taken in the aviation sector, Raju said the regional connectivity scheme would help in continued growth of the air cargo sector.
The government has taken various policy initiatives including reducing the dwell time and pushing for paperless transactions to boost cargo sector, he added.
"Air cargo in India is expected to register 9 per cent growth rate in the next few years" compared to half of this figure for global air cargo trade as a whole, Raju said. In the last decade, air cargo sector witnessed a growth of around 7 per cent.
While the domestic air passenger growth has been in double digits for more than two years, the cargo sector is yet to see robust expansion despite high growth potential.
Delivering the keynote address at the India Integrated Transport and Logistics Summit here, Raju said the regional connectivity scheme would help air cargo growth and as well as capture new business opportunities.
The first flight under the scheme, known as UDAN (Ude Desh ka Aam Naagrik), was launched last month. The scheme seeks to connect unserved and under-served airports as well as make flying more affordable.
Under the scheme, fares are capped at Rs 2,500 for one- hour flights and participating airlines are also provided with various incentives.