E-commerce Thrust for Air Express

With the burgeoning e-commerce sector and other new age industries in India, the air express industry is turning out to be a pivotal segment for enhancing exports, especially in the SME segment.

- Surya Kannoth

With the government’s emphasis on ‘Make In India’, ‘ease of doing business’ and enhancement of exports, it is all the more important that express delivery services (EDS) is recognised and facilitated with adequate infrastructure at the airports with rational lease tenures and rentals to provide efficient services in India.

“Unlike large companies who have in house departments taking care of their logistical and regulatory needs, the SME sector leans on the expertise offered by the express companies for the movement of their shipments as well as for regulatory support like Customs clearances etc. With the emphasis of government of India on Make in India, express industry would do well,” predicts Vijay Kumar, chief operating officer, Express Industry Council of India (EICI).

The National Civil Aviation Policy 2016 recognises that domestic and international air cargo and express delivery services is a key objective of the government and that revenue from air cargo helps airlines subsidise the cost of passenger tickets.

“Air cargo, particularly domestic has a high employment potential, especially for semi-skilled workers. Currently, air cargo volumes in India are very low as compared to other leading countries due to high charges and high turnaround time. Within the aircargo ecosystem, Express Delivery Services (EDS) has a distinct operational nature and is becoming pivotal especially in the light of double digit growth in e-commerce,” the National Civil Aviation Policy states.

E-commerce companies are expected to invest close to $6-8 billion in logistics, infrastructure and warehousing in the next few years, according to a recent Assocham-PwC study. The study suggested that there will have to be more investment in the air cargo sector.