India Port Sector Growth: India's Port Sector Set to Surpass Global Growth Amid Economic ExpansionETInfra
Port growth linked to broader economic objectives
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ETInfra
India's port sector is expected to grow at a faster pace than many major global economies, despite ongoing geopolitical tensions and global uncertainty, according to a recent report by PL Capital. The expansion is being attributed to rising domestic consumption, increasing trade volumes, and government-led infrastructure development.'We believe, despite ongoing geopolitical tensions and global uncertainty, India's ports sector is expected to grow faster than other major economies, driven by an increase in consumption and government-led projects,' the report stated.The report underlined the relationship between ports and economic growth in India. The government's effort to position the country as a global manufacturing base and its export-oriented policies are expected to support port expansion and the wider logistics sector.Cargo volumes at Indian ports grew at a compound annual growth rate (CAGR) of 6.2 per cent over FY2002 to FY2025. Non-major ports recorded a higher CAGR of 9.1 per cent, while major ports grew at 4.7 per cent. The demand for port infrastructure remains steady amid rising trade activity and infrastructure upgrades.India currently has 12 major seaports and over 200 non-major ports, with a combined capacity of approximately 2,700 million metric tonnes (mmt). Major ports are overseen by the central government, while non-major ports fall under state jurisdiction. The country aims to increase total port capacity to 10,000 mmt by 2047.The report noted several growth drivers including government programmes such as Sagarmala and PM Gati Shakti , increasing industrial activity, higher containerisation, a shift to multimodal logistics, and growing private sector participation.It also highlighted that the ports sector is undergoing structural change. Capacity expansion, technology-led efficiency improvements, and better connectivity are seen contributing to improved port performance.As India targets becoming a $10 trillion economy by FY2030, the port sector is expected to support this economic transition.
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