Will the Indian Elephant Ever Fly?

WITH double digit growth predicted for the years ahead, India has attracted the world’s attention and air cargo operators are lining themselves up for a piece of India’s ‘boom’ action.

However market conditions have turned volatile, with the rapid rise in manufacturing pushing the Indian rupee so high it is damaging exports.

With Indian exports more expensive and less competitive in global markets, businesses’ profits have taken a blow with exporters to the US suffering losses from 23 to more than 70 per cent because of the dollar.

Decreasing exports do not bode well for further development in domestic airfreight operations. And together with the tax and legal constraints international investors face, it is feared that few freighters will be seen across Indian skies. Will India’s airfreight opportunities surpass expectations, or will its potential remain untapped through infrastructure failings and red tape?