FlyingTypers has learned that despite India’s Directorate General of Civil Aviation (DGCA) ban on civilian drones, Amazon India continues to advance its case to implement a Prime Air drone project for package deliveries within the 2.26 kg weight in Mumbai and Bengaluru.
     Banned in the USA, Amazon had hoped to take advantage of lax Indian laws and had been testing drones in India since this past summer.
     The e-commerce giant announced sometime ago that it was pumping $2 billion into the Indian market to strengthen its infrastructure.

It’s About Connectivity

     The Indian government’s moves to connect the furthest corners of the country received a boost with the release of an in depth report, “Civil Aviation - Developing Remote & Regional Connectivity.”
     The report—a result of a strategic association between the Associated Chambers of Commerce and Industry of India (ASSOCHAM), one of the apex trade associations, and Yes Bank, the country’s fourth largest private bank—analyzes the Civil Aviation sector and suggests immediate and long-term objectives.
     According to Rana Kapoor, managing director & CEO, Yes Bank, and president, ASSOCHAM, the aviation sector is set for a huge leap.
     India, the report suggests, could well become the world’s third largest aviation market by 2020.
“Growth could be largely a result of the connectivity to Tier-II and III cities,” Mr. Kapoor said.
     The report outlined “the future roadmap for transforming the Indian skies through a comprehensive development policy over the next 20 years.”
     Meanwhile, the Civil Aviation Ministry has implemented a new and “comprehensive civil aviation policy,” according to officials. The policy includes regional and remote area air connectivity, ground handling and maintenance, and even training.


Investments Earmarked

     Industry gurus believe that investments of around $12 billion (USD) can be expected during the next five-year plan period, which ends in 2017.
     That figure, according to the report, could rise to around $98 billion, which will be required for airport infrastructure development by 2030-31.

Just In Time

     For the air cargo sector, the thrust on connectivity has come at the right time.
     India’s Tier-II and III cities—among these are a number of industrial hubs—have been experiencing growth.
     And with the Prime Minister’s ‘Make in India’ call to the manufacturing industry, the country could witness the creation of new industrial zones.
     This has led air cargo stakeholders to look forward to regional air connectivity. Regional connectivity will also be welcomed by the e-commerce industry.

Drone On

     As mentioned at the top, the drone scheme is but one solution as e-retailers today face problems of delivery as only a few airports are equipped to handle large volumes of express delivery shipments—especially during Diwali, a major gift-giving holiday.
     Emulating the ‘Next Day Delivery’ model started by Amazon India, a number of e-commerce players have started investing in infrastructure, logistics, and warehousing. The total amount that will be spent on warehousing, according to rough estimates, could reach $900 million by 2020.
     Once regional and remote air connectivity is achieved, the report pointed out that “a day may not be too far off when there is an increasing demand of expanding cargo connectivity to small towns through various merry-go-round aircraft using charter airplanes and general aviation.
     Saurabh Srivastava, director, Operations, PwC, said that “e-commerce has a huge potential in the country and its ripple effects will be felt not only by the air cargo sector, but also the manufacturing industry.”
Tirthankar Ghosh