start operating India’s first-ever free trade warehousing zone at GMR Aerospace
& Industrial Park of Rajiv Gandhi International Airport (RGIA), Hyderabad
from this month which could transform Hyderabad into an air transhipment hub
like Singapore, Malaysia or Dubai.
SpiceJet is also
in negotiations with the different metro airports in the country to set up
similar free trade warehousing zones, revealed an industry source.
The Indian airline
had signed an agreement to lease with GMR Hyderabad Aviation SEZ (GHASL), a 100
percent subsidiary of GMR Hyderabad International Airport (GHIAL), in March
2020 by which the airport constructed a 33,000 sq ft facility for the airline
to carry out the warehousing, distribution and trading activity.
India never had a free trade zone on the airside though it had many
across its ports
India already has
many free trade zones across its shipping ports and there is a few more coming
up. But India never had a free trade zone on the airside and it was causing
logistical issues for shippers and consignees.
“The free trade
zones are the foreign territory in Indian land like what you see in Singapore
Changi Airport or Al Maktoum International Airport in Jebel Ali, Dubai. Any
foreign customers who have not registered in India can easily come in and keep
their cargo in this space without getting into the taxes of India and without
paying any duties,” the source said.
e-commerce and cross border boom, there is a lot of cargo moving through the
air. Unfortunately, India doesn’t have any free trade zones right now. “The
facility is going to help many pharma customers that’s why SpiceJet has
strategically placed it in Hyderabad which is a pharma hub, he added.
SpiceJet is heading towards providing warehousing solutions
He also noted
that, with its cargo arm SpiceXpress, SpiceJet is heading towards providing
warehousing solutions and end to end logistics services similar to DHL.
GMR Aerospace & Industrial Park
& Industrial Park is housed in Hyderabad Airport City - India’s first
smart, Greenfield Airport City. The park offers a ready-to-use industrial
infrastructure with the flexibility of choosing land within a special economic
zone for businesses focusing on foreign markets and land in domestic tariff
area for businesses catering to the Indian market.
It is expected
that the pharma, aerospace & defence, electronics, automotive & FMCG
client base of Hyderabad International Airport at Telangana will benefit from
the availability of high-quality warehousing catering to the export and import
of goods from RGIA.