‘Promoting transit cargo hubs vital to boost EXIM trade’

On the airports front, the government is in the process of developing a concept paper to promote hub airports in India. This initiative aims to position India as a hub for both passenger and cargo traffic, further enhancing its role in international trade and logistics, says Pradeep Panicker, CEO, GMR Hyderabad International Airport (GHIAL). He adds, “The airport is geographically well positioned in India to be a transshipment hub. Increased transhipment activities will enhance connectivity, which will improve the delivery times for Indian EXIM cargo as well. With the majority of key locations in India located within a two hours flying distance and the ability to connect to the Middle East and South East Asia within 5-6 hours, Hyderabad is well equipped to facilitate both intra-India (I2I) regional connectivity and international transshipment connections from destination to India ( D2I) and from India to destination (I2D). While there is a strong push for “Make in India” and “Make for the world”, South-East Asia, including China still forms a substantial manufacturing base for the world. Consequently, there is a robust flow of goods from ASEAN countries to the Middle East, Europe and the US. India’s geographical position places it in the middle of this route, providing opportunities to leverage this dynamic. Airlines can achieve scale economies by consolidating cargo from Eastern countries along with the finished goods from India and transporting them to the Middle East and West at more competitive rates. The sectors like textiles, electronics, pharma, perishables, aerospace & defence offer significant opportunities for growth. Such an approach will not only boost transhipment cargo, but also impact the export and import cargo positively, as freight rates may decrease due to the combined volume of EXIM and transhipment cargo in the freighters. The Government has been promoting trade through initiatives like the recent G20 Middle East Europe Economic Corridor, which promotes EXIM trade.