With over 80% of global trade by volume and more than 70% by value moving by sea, ports remain the backbone of international commerce, according to the UNCTAD Review of Maritime Transport. For India, the dependence is even more pronounced: nearly 95% of the country’s trade by volume and 68% by value is carried through maritime routes. As global supply chains recalibrate, India is positioning its port and maritime ecosystem to capture a larger share of world trade.
A Vast Coastline, Strategic Opportunity
India’s 11,098-km coastline hosts 12 major ports and 217 other-than-major ports (OMPs), giving the country one of the most extensive port networks in the world. While “major ports” fall under the Union List of the Constitution and were historically governed by the Major Port Trusts Act, 1963, OMPs are administered by maritime states and Union territories. In practice, however, the distinction is largely administrative—several OMPs today handle cargo volumes exceeding those of some major ports.
Recognising this reality, policymakers have increasingly focused on creating a level playing field across ports, with uniform standards for safety, security, digitalisation and environmental compliance.
Governance Reforms Drive Efficiency
A critical inflection point came with the enactment of the Major Port Authorities Act, 2021, which replaced the decades-old trust-based framework. The new law grants ports greater financial and operational autonomy, allowing them to set tariffs, enter joint ventures and respond faster to market demand—bringing Indian ports closer to global best practices.
Parallelly, the government has been working to modernise the regulatory framework for all ports through the proposed Indian Ports Act, replacing colonial-era legislation and ensuring consistency across major ports and OMPs alike.
Private Participation Takes Centre Stage
One of the most significant shifts in India’s maritime strategy has been the expanding role of the private sector. In 2015–16, public-private partnership (PPP) terminals handled roughly 26% of cargo at major ports. By 2024–25, including captive berths, this share had risen to around 60%.
This trend mirrors global patterns, where private terminal operators manage nearly two-thirds of container throughput. Under the Maritime India Vision 2030, the government has set an ambitious target for around 85% of major-port cargo to be handled by private operators by the end of the decade.
Private investment has brought modern equipment, specialised terminals, faster turnaround times and deeper drafts—key ingredients for attracting larger vessels and high-value cargo.
Infrastructure Push and Financial Backing
To sustain momentum, the Centre has unveiled a multi-billion-dollar investment pipeline for ports, shipping and logistics. This includes funding support for port capacity expansion, development of new transshipment hubs, modernisation of shipyards and incentives for fleet expansion.
The government is also focusing on port-led industrialisation, with coastal economic zones, improved rail-road connectivity and inland waterways integration aimed at reducing logistics costs—currently higher in India than in many competing economies.
Strategic Location, Global Ambitions
India’s geographic position astride major East-West trade routes in the Indian Ocean gives it a natural advantage. By improving port productivity, deep-draft capacity and hinterland connectivity, policymakers aim to reduce dependence on foreign transshipment hubs and anchor more global cargo flows at Indian ports.
As global trade patterns evolve amid geopolitical shifts and supply-chain diversification, India’s sustained focus on maritime reforms, private participation and infrastructure development is steadily setting the course for a larger and more influential role in global maritime trade.
