Air Cargo Sector Growth: Faster Turnaround Time Key

New Delhi, Jul 4 (PTI) To tap the potential of the country's air cargo sector, the focus should be on further improving processes as well as ensuring faster turnaround time, a senior government official said on Thursday.

The government is working on developing logistics hubs.

Piyush Srivastava, Senior Economic Advisor at the Ministry of Civil Aviation, said the air cargo sector has a bright future and the number of freighters in the country is expected to rise.

Currently, Indian carriers have around 18 freighters.

There will be a focus on further improving the ease of doing business and faster turnaround time in the air cargo sector, he said while speaking at the conference organised by the ACFI (Air Cargo Forum India) in the national capital.

While passenger traffic has recovered after being hit by the coronavirus pandemic, air cargo is yet to fully recover to the pre-Covid levels.

In 2023-24, the air cargo handled in the country was a little over 3.36 million tonnes.

Surendra Kumar Ahirwar, Joint Secretary at DPIIT, a lot of movement is happening on the logistics side, including the skilling of people.

He also said there is sub-optimal utilisation of existing air cargo facilities and emphasised the need for developing hubs as part of the logistics infrastructure.

According to ACFI President Yashpal Sharma, the air cargo sector accounts for nearly 10 per cent of domestic carriers' revenues.

Citing market research reports, he said the country's air freight market is estimated to grow to USD 16.37 billion by 2027.

Also, the plans to establish air transport shipment hubs at major airports are expected to drive the industry's growth, he added.