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Since liberalization and opening up of the Indian economy to global markets in 1990, logistics and transportation industry has receives great impetus and attained ample momentum. Foreign Direct investments, innovation, free market mechanism has brought in complete change of India’s international trade and business relationships. Emergence of private and low cost airlines has also played a very important role in the entire process. Considerable investments are being made in modernisation of airports, cargo handling facilities, connecting infrastructure and air space management. The demand for cargo transportation has increased over the years due to short product life cycles and rapid increase of demand. Change to business models to “Just-in-Time” approach and global outsourcing have increased demand for air cargo by leaps and bounds. In this paper, I will discuss the scenario of air cargo in India. The first part will deal with description and analysis of air transport and aviation industry as a whole in the country. The second will focus on air cargo specifically.

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