Research and Markets: Strategic Analysis of Air Cargo Market Opportunities in India: Provides the Current Market Size, Forecasts, Key Market Drivers and Restraints

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Tue Nov 24, 2009 6:25am EST

DUBLIN--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/research/09d8a3/strategic_analysis) has
announced the addition of Frost & Sullivan's new report "Strategic Analysis of
Air Cargo Market Opportunities in India" to their offering. 

Air Cargo Market in India Thrives with Economic Development and Rising
International Trade 

The rapid growth of international trade has boosted prospects for the air cargo
market in India. The country's merchandise export and import have registered a
double-digit growth rate of 23 percent in 2007. Trade was growing at over 25.3
percent over the past five years, as a greater share of trade moved toward
finished goods. Increasing globalization, establishment of manufacturing
facilities, and India's growing might in the information technology (IT) space
have contributed to the boom in the country's economy. This has resulted in an
increased aggregate demand from India, driving the air cargo services market.
"Air cargo, trade and the gross domestic product (GDP) of a country have a
direct relationship and are interdependent," notes the analyst of this research
service. "Air cargo enables nations, regardless of location, to efficiently
connect to distant markets and global supply chains in a speedy, reliable
manner." 

Relaxation on the cap for foreign direct investment (FDI) in aviation bodes well
for the Indian air cargo market. In the aviation sector, the FDI flow in the
domestic scheduled passenger airline sector is expected to remain capped at 49.0
percent; however, for non-scheduled airlines, the FDI limit goes up to 74
percent, along with that for chartered and cargo airlines. The Government's
policies have been favorable toward the private participants entering the
market. The major policies include 100 percent FDI permissible for existing
airports and under automatic routes and 100 percent tax exemption for airport
projects over a period of t0 years. 

Inadequate Infrastructure Poses a Major Challenge to Air Cargo Movement 

The lack of proper infrastructure is proving to be a roadblock to efficient
cargo handling in the Indian air cargo market. Cargo warehousing facilities are
not up to standards at India's major airports, and most of these amenities are
restricted to international freight. "Domestic cargo operations have been
largely limited because of non-availability of warehousing space in the Tier-2
and Tier-3 cities," says the analyst. "Very few private market participants have
the license to operate bonded warehouses limiting the flow of investment."
Currently, India is upgrading its major airports, which account for 93 percent
of the total international and 84.4 percent of the total domestic freight
handled. The move is intended to satisfy international standards and provide
world-class airports for business and the tourist industry. Once the
infrastructure issues are addressed and the new cargo airports are made
operational, the market will witness tremendous growth within the next 5 years. 

Dwell time for import and export cargo at Indian airports is 3 to 5 days as
compared to an average of 6 to 12 hours in other leading international airports.
The state of customs clearing and delivery of cargo has remained a rough ride
for cargo operators. Public-private partnerships (PPPs) at the major air cargo
hubs are helping to develop the infrastructure according to international
standards and increase the profit margins. India will soon develop into a
transshipment hub with the upcoming Multimodal International Cargo Hub at
Nagpur, which is designed to match the high international standards. It would
greatly benefit Indian exporters in terms of reduction in dwell time, cost, and
faster customs clearance and delivery of cargo. 

Market Sectors 

Expert Frost & Sullivan analysts thoroughly examine the following market sectors
in this research:

* Infrastructure required for cargo handling at airports 
* International air cargo traffic at Indian airports 
* Bonded warehouse facilities at airports

This Frost & Sullivan research service titled Strategic Analysis of Air Cargo
Market Opportunities in India provides the current market size, forecasts, key
market drivers and restraints. In this research, Frost & Sullivan's expert
analysts thoroughly examine the following: infrastructure required for cargo
handling at airports, international air cargo traffic at Indian airports, and
bonded warehouse facilities at airports. 

Key Topics Covered:

Executive Summary

* Country Snapshot 
* Market Overview 
* Air Cargo Infrastructure 
* Market Drivers and Restraints 
* Market for Air Cargo 
* Air Cargo Transportation 
* Conclusions

Global Air Cargo Market

* Global Air Cargo Market Overview 
* Global Freighter Fleet 
* Air Cargo Traffic Growth across Countries 
* Air Cargo Traffic versus Passenger Traffic Growth across Countries 
* Top Ten Cargo Airports and Airlines in the World 
* Key Conclusions

Introduction to Air Cargo Market in India

* Overview of India's International Trade and Air-lifted Commodities

Infrastructure for Air Cargo Operations in India

* Airports in India 
* Regulatory Bodies for Civil Aviation 
* Policies for Investments in Airports in India 
* Major Air Cargo Hubs in India and Future Investments

Air Cargo Transportation Market in India

* Market Overview and Dynamics 
* Industry Challenges, Market Drivers and Restraints 
* International Air Cargo Market 
* International Air Cargo Market

Competitive Analysis

* International Air Cargo Market Participants 
* Domestic Air cargo Market Participants 
* Intermediaries in Air Cargo Value Chain

Conclusions 

Database of Key Industry Participants

* Air Cargo Terminal Handling Companies 
* Domestic Airlines Operating in India 
* International Airlines Operating in India 
* Domestic Air Express Companies 
* International Air Express Companies

Appendix

* Acronyms and Abbreviations 
* Profile of Major Airports in India

For more information visit
http://www.researchandmarkets.com/research/09d8a3/strategic_analysis

Research and Markets
Laura Wood, Senior Manager,
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716 

Copyright Business Wire 2009

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