The minister said the growth of e-retailers will substantially help in pushing growth of domestic air cargo sector. According to the draft aviation policy, revenue from air cargo can significantly help airlines subsidise the cost of passenger tickets. Currently, air cargo volumes in India are extremely low as compared to other leading countries due to high charges. While the domestic aviation sector has been witnessing substantial growth in recent times, the cargo space remains a laggard. Raju said promotion of air cargo is a key objective of the government, given its potential considering the ‘Make in India’ initiative as well as the e-commerce segment.

Source: Mint June 12, 2016 09:00 UTC