Capacity crunch for cargo out of India could get worse

Tight capacity for air cargo out of India could get even tighter following the elimination of textile quotas on January 1, 2005.

Although textiles make up most of the export shipments, automotive and pharmaceutical goods are also significant.

Airfreight volume from India to the U.S. has been increasing by approximately 8 percent each year, and is likely to stay at that rate over the next three years.

Congestion is being felt in other ways, as well. The fast-growing high tech industry in and around Bangalore, India has its challenges: high staff turnover; competition from China; backlash from U.S. voters; and more recently, infrastructure problems.

The longer commute alone has prompted some companies to move elsewhere, to cities such as Madras and Calcutta.

Companies and citizen groups blame a nonresponsive Karnataka state government for Bangalore's worries.

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