‘Strong domestic market makes India favourable investment option’

“Industries across various sectors such as electronics, apparel, automobiles, capital goods, and semiconductor manufacturing are increasingly considering India as a favourable investment option,” says Pradeep Panicker, CEO, GMR Hyderabad International Airport. He adds, “This is primarily due to India’s strong domestic market, which has become a preferred choice for companies looking for alternatives to China for their manufacturing and supply chain operations. As a result, India’s export potential is expected to surge to $835 billion by 2030, a significant increase from the $431 billion recorded in 2023.As per AAI report, domestic air cargo has already reached pre-Covid level with total India’s Domestic Air Cargo stands at 1.3 Mn MT in FY23-24. Air freight is experiencing a resurgence yet encountering obstacles. Despite an increase in volumes compared to the previous year, driven by e-commerce, favourable government initiatives, increased connectivity and changes in trade routes, challenges such as the conflict in Ukraine and persistent problems like labour shortages are constraining capacity. As a result, prices remain elevated. Further, disruptions in sea freight are causing some cargo to shift to air transport, adding pressure to the already strained system. While the India story seems robust there are some concerns due to the possible slowdown of global economies including China.”