The Indian apparel export sector voices opposition to the transshipment of Bangladesh export cargo through Delhi Air Cargo complex, asserting detrimental impacts on India’s competitiveness amid logistical challenges.
The Indian apparel export industry is raising concerns over the transshipment of Bangladesh export cargo through Delhi Air Cargo complex, emphasising the adverse effects on India’s competitiveness. Initially permitted only through Kolkata Air Cargo complex since 2020, this facility expanded to Delhi last year. The ongoing Red Sea crisis has already inflated logistical costs and prompted a shift from sea to air for export shipments.
Approximately 20-30 loaded trucks arriving in Delhi daily have disrupted the smooth flow of cargo, creating an opportunity for airlines to exploit the situation. Consequently, air freight rates have surged, leading to delays in handling and processing export cargo. The Cargo Terminal at the IGI Airport, Delhi, faces severe congestion, rendering Indian apparel exports through the Delhi air cargo complex uncompetitive.
Sudhir Sekhri, Chairman of the Apparel Export Promotion Council (AEPC), expresses concern, stating that permitting Bangladeshi export cargo through Delhi Air Cargo Terminal exacerbates logistical challenges and raises transportation costs for apparel exporters. AEPC has formally requested the Chairman of the Central Board of Indirect Taxes and Customs (CBIC) to suspend this transshipment facility to alleviate the strain on the Indian apparel export industry.