- Indian Ports Set for Expansion with 500 MTPA Capacity Increase by 2028.
- Rising Imports and Lower Freight Costs Drive Growth in India’s Port Sector.
- Transshipment and Cargo Traffic Surge as Indian Ports Expand Operations.
India’s port sector is likely to develop at a compound annual growth rate of 4-7% over five years, driven by increasing imports, falling freight costs, and stabilizing global supply chains. Cargo traffic will grow at a consistent rate of 3-6% every year, and utilization levels are expected to stabilize at about 55% in the medium term, reports Infra.
Increasing Capacity and Transshipment Growth
The report identifies a major capacity addition in Indian ports, with a projected rise of 500-550 MTPA every year from FY 2023 to FY 2028. This will be fueled by sustained demand for petroleum, oil, lubricants (POL), coal, and containerized cargo handling.
Transshipment, which at present accounts for 25% of Indian container throughput, continues to be a key segment of the business. Chennai Port will be a key player in transhipment, enhancing India’s status as a global trade hub even further.
Strategic Significance of Indian Ports
India’s ports handle 95% of the country’s export volumes and 70% of its export values, underscoring their importance in international trade. The country’s strategic location in the Indian Ocean aligns with 80% of the global maritime oil trade, enhancing its potential to become a dominant force in global shipping.
With a 7,500 km coastline and 20,275 km of national waterways in 24 states, India’s port infrastructure is poised for expansion. The industry comprises 13 major ports and 205 non-major ports, catering to the nation’s growing trade network.
Performance of Major and Non-Major Ports
In FY24, large ports received 819 MMT of cargo, and in total, 699 MMT was registered from April 2024 to January 2025. The industry functions with a total capacity of 2,604 MTPA, which will increase manifold in the future years.
The report notes specific functions of major and non-major ports within India’s port network. The central government manages major ports that are located primarily around industrial clusters and cater to a variety of cargo types. Non-major ports, however, have been growing at a more rapid rate. Non-major ports registered a 7.6% rise in cargo traffic during FY23 compared to the 4.7% expansion for major ports.
Future Outlook for India’s Port Industry
With growing cargo traffic, improved infrastructure, and bettering operational efficiency, India’s ports will continue to be an important facilitator of trade and economic development. Combined efforts between major and non-major ports will fuel the overall growth in the sector, strengthening India’s position in the global maritime trade matrix.
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Source: Infra
