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India: Poor infrastructure limits airfreight

India: Poor infrastructure limits airfreight

By Hpanchal on August 25, 2011

After all, many experts say, India’s economy shows no signs of slowing down. And although the nation is facing inflation pressures, which are elevating labor costs, India will most likely be able to compensate for this expense, British Airways’ Cheetham maintains. For one thing, he says, it will affect the manufacturing of low-end merchandise, which will validate attempts to diversify production.

Thapar also projects continued economic growth, especially in India’s southern region, which is known for its booming technology sector. Crediting the South Asian nation with becoming a supplier to emerging markets, he says India’s mid- to long-term prospects for airfreight growth are strong.

In fact, Thapar says, “In the near future as the Indian economy hopefully contains inflation and moves to a real growth of 9-percent-plus, consistent double-digit air cargo growth looks to be a realistic expectation.”

Whether this expectation becomes a reality or not, one fact remains: India’s airfreight operations continue to be a contradiction of progress and resistance to change.

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