The domestic e-commerce market in India is booming and offers great opportunities, Jet Airways senior vice president for cargo, Pradeep Kumar tells Air Cargo Week (ACW).
Jet, along with the wider industry, has seen flat conditions since 2014 but Kumar expects improvements in the second half of 2016. The weakness of the Indian rupee is helping exports, particularly pharmaceuticals to Europe and the USA.
Kumar tells ACW: “As has been the growth trends in the global airfreight market, Jet Airways cargo has also witnessed flat market conditions and growth since 2014.”
Kumar says there are reasons to be optimistic despite the industry’s struggles: “Whilst the markets remain less optimistic particularly on account of the world economic downturn, Jet Airways expects market recovery by the second half of 2016.”
“This is attributed to depreciation of the Indian rupee stimulating exports and continued momentum on pharmaceuticals to Europe and USA and the explosive growth in domestic e-tail business.”
He says Jet continues to do the most business with the Gulf Cooperation Council (GCC) countries, Europe, Hong Kong and South East Asia. Kumar tells ACW that Jet will expand further with more details to be announced soon.
“Imports booked on Jet Airways cargo are classified under mobile phones, electronics and communication equipment, branded fashion goods and heavy machinery. On the export side, major commodities are fresh produce, pharmaceuticals, garments, industrial and manufactured goods, fresh flowers and marine products.”
Infrastructure remains a challenge in India, but e-commerce is the biggest opportunity.
Kumar says: “Challenges are on account of limited infrastructural development at cargo terminals located at major airports in metro cities. The e-commerce segment is expected to grow manifold which will create opportunities for many.”