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Hindustan Times
23-07-2025
- Business
- Hindustan Times
Setting sail for Viksit Bharat with maritime growth push
India's ports are transcending traditional roles as logistical nodes to become modern gateways of commerce. A focus on capacity expansion, mechanisation, digitisation, and ease of doing business has propelled ports such as Visakhapatnam, Mundra, JNPA, and Kamarajar up in the global rankings. The World Bank's Logistics Performance Index (LPI) 2023 acknowledged India's efficiency and speed, placing it ahead of many developed nations. The country has risen in key logistics indicators, ranked 38th of 139 countries in 2023, up from 54th in 2014. India's rank in the international shipment category improved dramatically from 44th to 22nd in the period, while average container dwell time reduced to approximately 2.6 days, a competitive figure globally. The turnaround time (TRT) of major ports has also sharply declined from around 94 hours to about 48.06 hours. Substantial infrastructure development underpins this progress. Cargo handling capacity at major ports, over the past decade, reached 1,681 million tonnes per annum (MTPA) from 800.5 MTPA. Ninety-eight port modernisation projects, costing over ₹32,000 crore, have been completed, adding more than 230 MTPA to the annual port capacity. Major ports' financial performance has been equally impressive, with total income rising from ₹11,760 crore in FY15 to ₹24,203 crore in FY25 — a 7.5% CAGR over 10 years. Operating surplus nearly tripled to ₹12,314 crore, driven by a 13% CAGR over the same period. Operational efficiency also improved significantly, with the operating ratio declining from 64.7% in FY15 to 42.3% in FY25, reinforcing the ports' financial sustainability. Significant projects like the Tuticorin International Container Terminal (TICT) and the foundation stone laying for the ₹76,000 crore Vadhavan Port mark crucial milestones in enhancing infrastructure and logistics efficiency. The Vizhinjam International Seaport will boost India's trans-shipment capabilities. Ten Indian ports have now made it to the Global Top 100 in the World Bank's CPPI 2023 Report, with the Visakhapatnam Port climbing to 19th position from 122nd in 2022. India is also reclaiming its rivers, once vibrant arteries of commerce, for modern logistics. Under the NDA government, 106 rivers have been upgraded as National Waterways, including the Ganga and the Brahmaputra. This drives a seven-fold increase in inland waterways-based freight movement, from 18.1 million metric tons (MMT) in FY14 to 146 MMT in FY25. The sector is now equipped with multimodal terminals, night navigation, and digital monitoring systems. Global attention has been drawn to this revival, with collaborations enhancing technology and promoting sustainable freight movement. The budgetary allocation for Inland Waterways Authority of India of ₹1,700 crore for FY26 is more than the total expenditure on inland waterways for the 28 years from 1986 to 2014. The Cargo Promotion Scheme, providing a 35% incentive for inland waterway utilisation, further bolsters this growth. The first Inland Waterways Development Council (IWDC) meeting committed an investment of ₹45,000 crore for river-cruise tourism development by 2047. Cruise tourism is also experiencing a significant upswing, with major international companies now docking at Indian ports like Mumbai, Kochi, Goa, and Visakhapatnam. The launch of the Cruise Bharat Mission in September 2024 aims to double cruise passenger traffic by 2029, with plans for six new international cruise terminals. Sea cruise passengers increased from 84,000 in 2014 to 4.92 lakhs in 2024-25, registering a whopping 500% increase. India's commitment to sustainability in the maritime sector is evident through pioneering green initiatives. The Harit Sagar Green Port guidelines aim to reduce carbon intensity, and the Green Tug Transition Programme (GTTP) targets a 30% reduction in GHG emissions from port vessels of major ports by 2030, in line with the Maritime Amrit Kaal Vision 2047. Three major ports are being developed as green hydrogen or ammonia hubs under the National Hydrogen Mission. The Harit Nauka guidelines promote 100% green vessels by 2047, and India also launched its first indigenous hydrogen fuel cell vessel. India has been re-elected to the Council of the International Maritime Organisation (IMO) for the biennium 2024-25 with the highest tally. New routes of collaboration are being forged, notably with the signing of the Inter-Governmental Framework Agreement with the UAE for the India-Middle East Europe Economic Corridor (IMEC). The long-term contract for the development of Shahid Beheshti Port Terminal, Chabahar, signed with Iran, is a pivotal step in opening up the International North-South Transport Corridor (INSTC) to Central Asia. Beyond infrastructure, human capital and heritage are also key focus areas. An astounding 200% growth was achieved over the last decade in increasing India's presence in the global seafaring community, raising the number of active Indian seafarers from 1.08 lakh in 2014 to 3.20 lakh this year. The number of women seafarers has risen from 341 in 2014 to 2,557 in 2025. The ministry of ports, shipping and waterways also launched Sagar Mein Samman to increase the participation of women in the maritime sector. The development of the National Maritime Heritage Complex at Lothal, Gujarat, as a world-class maritime museum and cultural centre, along with the first-ever India Maritime Heritage Conclave, underscores a commitment to preserving and showcasing India's rich maritime history. Budget FY26 announced an array of fiscal incentives for shipbuilding and ship recycling, including the Maritime Development Fund, Ship Building Financial Assistance Policy 2.0, inclusion of large ships above a specified size in the Infrastructure Harmonised Master List, measures to facilitate shipbuilding clusters, extension of tonnage tax regime to inland vessels, extension of basic customs duty exemption on raw materials and components for ship building and ship repair for another 10 years. This bouquet of initiatives has started attracting major global shipbuilding companies to joint ventures with Indian shipping companies. This is bound to create massive employment opportunities and investment multiplier effects. In essence, the past decade has marked a decisive shift in India's maritime narrative. India is rapidly transforming into a preferred maritime destination for trade, innovation, and investment as it charts the course for Viksit and Atmanirbhar Bharat. Sarbananda Sonowal is Union minister for ports, shipping, and waterways. The views expressed are personal.
News18
23-07-2025
- Business
- News18
Modi's Maritime Revolution: Redefining India's Economic, Climate And Strategic Future
Last Updated: Modi's maritime gambit positions India as an indispensable seafaring power capable of shaping the oceanic order of the 21st century India's 7,500-km coastline has long been an underused asset. Under Prime Minister Narendra Modi, however, the waterfront has been recast as a fulcrum for national power. Data reveals a sector in unprecedented expansion: cargo-handling capacity has surged by 87.6 per cent under the NDA government, rising from 1,399.99 million metric tonnes per annum (MMTPA) in 2013-14 to 2,627 MMTPA in 2022-23. This remarkable growth, however, represents only the foundation of Modi's vision for India as a global maritime powerhouse by 2047. Historically a neglected asset in India, ports are now surging upwards. Major ports now handle 855 million tonnes of cargo annually, a 4.3 per cent increase from the previous year, while achieving a 48 per cent improvement in average turnaround time, from 96 hours in 2014-15 to 49.5 hours in 2024-25. These efficiency gains position Indian ports ahead of developed economies, with container dwell times averaging just 2.6 days compared to 6-7 days at major US ports. Closing the Gap Modi's maritime transformation has fundamentally altered India's position in global logistics rankings. The World Bank's Logistics Performance Index reflects this progress, with India rising from 54th position in 2014 to 38th in 2023. More significantly, nine Indian ports now feature among the world's top 100, with Visakhapatnam Port ranking 19th globally for container performance. Whilst India's logistics costs have fallen to 10 per cent of GDP—targeting single-digit levels by year-end—China's equivalent figure remains at 14.4 per cent. Union minister Nitin Gadkari emphasised the impact: 'Turnaround times at ports are down by 45 per cent, and transport costs have dropped by 25 per cent". The National Logistics Policy, launched in September 2022, provides the strategic framework for this transformation. Through its four pillars: digital integration, Unified Logistics Interface Platform, ease of logistics, and system improvement, the policy coordinates logistics development across 16 ministries. The PM Gati Shakti Master Plan complements this approach, utilising GIS-enabled digital platforms to ensure coherent multimodal infrastructure development. These initiatives have already reduced port dwell times from 3.4 days in 2018 to 2.6 days in 2023, delivering benefits to exporters and importers nationwide. Sagarmala and Beyond The Sagarmala Programme, launched by Modi in March 2015, represents the cornerstone of India's maritime transformation. This flagship initiative encompasses 839 projects worth Rs 5.79 lakh crore, of which 272 projects valued at Rs 1.41 lakh crore have been completed. The programme's impact extends beyond physical infrastructure: it has generated 118 per cent growth in coastal shipping over the past decade and achieved a remarkable 700 per cent surge in inland waterway cargo movement. Under Sagarmala's modernisation pillar, 103 completed projects have added 528 million metric tonnes per annum of port capacity. The programme's connectivity dimension has been equally transformative, with 94 projects costing Rs 58,073 crore adding 8,400 kilometres of road and rail networks connecting ports to consumption centres. This infrastructure expansion directly addresses India's long-standing challenge of last-mile connectivity, ensuring that port efficiency gains are translated into broader logistical improvements. The Major Port Authorities Act, 2021, grants port authorities greater tariff autonomy, facilitating private sector engagement. Recent parliamentary approvals include the Bills of Lading Act 2025, replacing 169-year-old colonial legislation with modern, internationally aligned frameworks. The Indian Ports Bill, 2025, further consolidates port governance, establishing Maritime State Development Councils and empowering State Maritime Boards for comprehensive sector oversight. The private sector has responded enthusiastically to these reforms. Investment in public-private partnership projects at major ports has increased threefold, from Rs 1,329 crore in FY 2022-23 to Rs 3,986 crore in FY 2024-25. Modi's maritime vision explicitly links port development with employment generation and technological advancement. Sagarmala-linked industrial and logistics clusters are projected to create 10 million positions, including four million direct roles by 2025. The Skill Development Programme under the DDU-GKY framework has already trained over 20,000 coastal youth across twenty districts, demonstrating the government's commitment to inclusive maritime growth. The Centre of Excellence in Maritime & Shipbuilding at Visakhapatnam and Mumbai exemplifies this approach, training 10,500 technicians annually in mechatronics, simulation, and robotics for shipyards. These institutions ensure that India's maritime expansion rests on a foundation of skilled human capital capable of operating and maintaining advanced port technologies. The government's broader skilling initiative aims to train 50,000 youth from the Northeast in maritime skills over the next decade, with dedicated centres in Guwahati and Dibrugarh leading this effort. On the technological front, the Unified Logistics Interface Platform represents perhaps the most ambitious technological initiative, integrating datasets from 16 ministries into a single digital ecosystem. It enables seamless cargo release processes and real-time tracking across multimodal transport networks. The National Logistics Portal, launched in January 2023, provides one-stop access to all logistics services, reducing bureaucratic friction and improving transparency for businesses of all sizes. Sustainability and Climate Leadership Modi's maritime agenda explicitly positions ports as leaders in India's climate transition. Three major ports, Kandla, Paradip, and VO Chidambaranar, are being developed as green hydrogen hubs under the National Green Hydrogen Mission. This Rs 1.5 lakh crore initiative aims to produce five million tonnes of green hydrogen annually by 2030, positioning India as a global leader in clean fuel exports. Kandla Port will become India's first operational green hydrogen facility by July 2025, with a 1-megawatt electrolyser producing 18 kg of hydrogen per hour. The facility will scale to 10 megawatts, generating 80-90 tonnes annually whilst serving as a model for similar developments across India's port network. These hydrogen hubs leverage India's renewable energy capacity, currently 223 gigawatts, including 108 GW from solar and 51 GW from wind, to create export-oriented clean fuel industries. Major ports have committed to sourcing 60 per cent of their electricity from renewables by 2030 and reducing carbon emissions per tonne of cargo by 30 per cent over the same period. Jawaharlal Nehru Port's 30-megawatt rooftop solar installation already produces 45 GWh annually, offsetting 32,000 tonnes of CO₂ emissions and demonstrating the practical feasibility of port-based renewable energy. Maritime Power Projection Apart from all the good it does for the economy and the environment, major ports are the epitome of maritime power projection. China, Russia, the UK, and the United States all possess advanced major ports. Modi's maritime strategy also explicitly recognises ports as instruments of geopolitical influence and national security. The transformation of India's SAGAR doctrine into MAHASAGAR reflects this evolution, positioning India as the Indian Ocean's primary security provider whilst expanding cooperation mechanisms with regional partners. The Indian Navy's 17 interventions during Red Sea disruptions since December 2023 demonstrate India's operational capability to protect maritime trade routes crucial to global commerce. Container sovereignty remains a critical vulnerability in India's maritime strategy. Current domestic production of 10,000-30,000 containers annually pales beside China's 2.5-3 million, leaving Indian exporters vulnerable to supply shocks and price manipulation. Modi's government is addressing this through proposed production-linked incentives targeting 500,000 TEUs of domestic capacity by 2028, reducing strategic dependence whilst building indigenous manufacturing capabilities. Modi's maritime transformation carries profound implications for India's broader strategic positioning. The Maritime Amrit Kaal Vision 2047 envisages Rs 75-80 lakh crore in sectoral investment, targeting 10,000 MMTPA of port capacity and positioning India among the world's top five shipbuilding nations. International recognition of India's maritime progress validates Modi's strategic vision. The country's re-election to the International Maritime Organisation Council with the highest tally reflects global confidence in India's maritime leadership. top videos View all The challenges remain formidable. Container supply vulnerabilities, chokepoint exposure, and the complex geopolitics of corridor development require sustained attention and adaptive strategies. If India sustains this trajectory, the numbers generated at today's ports will translate into tomorrow's diplomatic leverage on the global stage. Modi's maritime gambit positions India as an indispensable seafaring power capable of shaping the oceanic order of the 21st century. The transformation of India's coastline represents, ultimately, the anchoring of India's broader global ascent in the strategic realities of maritime dominance. About the Author Sohil Sinha Sohil Sinha is a Sub Editor at News18. He writes on foreign affairs, geopolitics along with domestic policy and infrastructure projects. tags : Indian ports pm narendra modi Sagarmala United states view comments Location : New Delhi, India, India First Published: July 23, 2025, 10:25 IST News opinion Opinion | Modi's Maritime Revolution: Redefining India's Economic, Climate And Strategic Future Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Time of India
04-07-2025
- Business
- Time of India
PM Gati Shakti cuts India's logistics costs by 5% of GDP: NCAER, ET Infra
Advt Advt India's logistics costs have come down to betweenof GDP, significantly lower than previously assumed figures of, according to studies carried out by the National Council of Applied Economic Research (NCAER). The drop reflects the success of thefor infrastructure development, as per a report titled Gati Se Pragati, released on the country's logistics costs remain above global benchmarks ofseen in developed economies. This positions India favourably for achieving world-class logistics efficiency through coordinated infrastructure development. Simultaneously, India's improvement in the World Bank's Logistics Performance Index—from 44th to 38th in 2023—indicates positive momentum, though the report states substantial scope remains for further India's most ambitious infrastructure coordination initiative, fundamentally reshaping the nation's approach to connectivity and economic development. The report reveals that while the programme has established robust institutional frameworks and achieved initial coordination successes, substantial opportunities remain to accelerate India's economic transformation through targeted interventions across its seven infrastructure a holistic approach encompassing, each contributing distinct value to India's connectivity programme's targets are ambitious: expanding, increasing, establishing, and achieving comprehensiveThese targets align with India's broader economic objectives while addressing critical infrastructure bottlenecks that have historically constrained growth. However, significant implementation challenges persist across all seven engines, including, andbetween central and state analysis reveals that while the institutional framework exists, translating coordination mechanisms into accelerated project delivery requires enhanced focus on, andThe economic impact assessment demonstrates substantialfrom infrastructure investments, with each rupee invested generating betweeneconomic output, depending on the infrastructure type. Roads and railways exhibit the highest multipliers, while emerging sectors likepresent significant untapped beyond direct economic impact, encompassing, and enhancedfor citizens. Strategic interventions identified for optimal Gati Shakti implementation include establishing, creating, enhancingthrough innovative models, and strengtheningacross implementing agencies, the report success ofultimately depends on, andof coordination mechanisms to emerging challenges and opportunities, the report added.
Business Recorder
02-07-2025
- Business
- Business Recorder
Unlocking Pakistan's Logistics Potential on National Logistics Day
TEXT: As we mark National Logistics Day, it is time to reflect on the backbone of Pakistan's economy — the logistics and transportation sector — and to chart a path forward. Currently, this sector contributes over 12% of GDP and employs 6% of the country's workforce, handling 98% of Pakistan's transportation needs. Yet, despite its significance, Pakistan's road logistics sector is mired in inefficiency, underinvestment, and outdated governance frameworks. The latest Pakistan Business Council (PBC) report 'Pakistan Road Logistics, Challenges, Opportunities and Policy Response'-2025 paints a sobering picture: Pakistan's Logistics Performance Index (LPI) has dropped from 2.42 in 2018 to 2.3 in 2025, ranking far behind regional countries India (rank 44), Iran (100), and Bangladesh (64). The above report echoes the same policy recommendations as detailed in this article in its 'Prioritized Recommendations'. The lack of an integrated national transport policy and a dedicated Ministry of Transport and Logistics has hampered coordinated action. Responsibilities are fragmented across federal, provincial, and quasi-government entities, leading to poor planning and execution. This structural weakness allows informal operators, backed by politically influential sectors to evade regulations — further distorting the market and discouraging formal players. In the PBC Report: 'Dedicated Ministry or Focal Authority for the Logistics Sector: It is important to realize that logistics is an interconnected sector, and one mode is not independent of the other. Therefore, a focused approach is required to help the sector grow. One glaring issue is the non-implementation of Axle Load regulations. Overloading is a major cause of premature road infrastructure failure and road accidents. The World Bank estimates that road accidents cost Pakistan 4.5% of GDP, equivalent to $12.5 billion annually. Strict enforcement of Axle Load laws, including vehicle impoundment and cargo seizure for violations, is essential to safeguard both infrastructure and lives. In the PBC Report: 'Axle Load Enforcement: 1) Strengthen Regulations: Enforce axle load limits uniformly across all regions to minimize road damage and extend infrastructure lifespan. 2) Monitoring and Penalties: Implement weighbridges equipped with automated systems for accurate load monitoring and impose strict penalties for violations'. Despite the best intentions, investments in Pakistan's motorways have largely failed to deliver their intended economic benefits. Many motorways built under BOT arrangements either prohibit overloaded trucks—to protect the infrastructure for which investors are liable—or allow such vehicles, resulting in severe damage and escalating repair costs (major maintenance now required in the second year, instead of the seventh). The motorway network has thus become a white elephant, unable to service its debts or justify the public and private investments made. Motorways cannot be financially viable on passenger traffic alone. Their full commercial and economic potential depends on carrying freight traffic. Yet freight operators avoid these roads, preferring to run overloaded on national highways where axle load limits are not enforced—causing massive damage to both highway infrastructure and the public exchequer. Another pressing need is the modernization of Pakistan's trucking fleet. With only 300,649 registered trucks — compared to India's 12.5 million — the sector suffers from outdated, fuel-inefficient vehicles that raise costs, emissions, and road safety risks. The PBC recommends developing green financing tools to support fleet renewal with Euro-5 compliant and electric vehicles, a move that would also align with emerging global climate regulations like the EU Green Deal. In the Pakistan Business Council Report: 'Fleet Modernization and Financing: Expand Access to Credit: Develop low-interest loan schemes and financial products tailored to small and medium-sized operators, enabling them to upgrade their fleets'. The logistics firms are under immense pressure of excessive rate of taxes, the federal government's recent decision in the 2025-2026 budget to increase the withholding tax on logistics services from 4% to 6%. The 6% on revenue translates to more that 50% of the thin profit margin in this sector. Normal tax rate for companies is about 29% of the profit in Pakistan for other businesses. Even 4% was excessive than 29%. This decision, if implemented, will deal a devastating blow to the service sector — particularly to an already struggling goods transport industry that plays a critical role in Pakistan's economy. This increase will push small and medium-sized transporters out of the formal tax net in a desperate attempt to keep their businesses afloat. This will inevitably undermining both government revenue collection and the rule of law. Roadside security is another concern. Roadside robberies and thefts pose serious risks, particularly in key bottleneck areas. The government must step up security patrols and protect the lifelines of our economy. The path forward is clear: • Enforce Axle Load limits strictly • Provide targeted green financing for fleet upgrades • Establish a unified Ministry of Transport and Logistics to drive reforms • Set a supporting Rate of Tax to logistics, similar to other businesses and industries. By tackling these issues with urgency, Pakistan can transform its logistics sector into a regional powerhouse — supporting exports, creating jobs, and enhancing national competitiveness. On this National Logistics Day, let us commit to unlocking the sector's full potential. RanaAsimShakoor Chairman, FOAP Copyright Business Recorder, 2025
Indian Express
05-06-2025
- Business
- Indian Express
On World Environment Day, Indian Railways reaffirms its commitment to sustainable development
Every time you choose to travel by train, you are not just choosing comfort or convenience — you are choosing a cleaner, greener Bharat. More than 700 crore people chose to travel in Indian Railways last year. It's our lifeline, and a green promise for tomorrow. Indian Railways is helping the country move closer to the Panchamrit goals set by Prime Minister Narendra Modi — net zero by 2070. It is enabling this through a multi-pronged approach: By shifting traffic from road to rail and powering operations with cleaner, greener energy sources. Together, these moves are helping India decarbonise its economy at scale. In 2013-14, Indian Railways carried about 1,055 million tonnes of cargo. This has increased to 1,617 million tonnes in 2024-25, making our railway the second-largest cargo-carrying railway in the world. Using the computations done by experts, this shift of cargo from road to rail has helped our country save over 143 million tonnes of CO2 emissions. That's like planting 121 crore trees. Transporting goods by rail costs nearly half of what it does by road. This means big savings, not just for businesses, but for the entire economy. This shift has helped save Rs 3.2 lakh crore in logistics costs over the past decade. Railways are also much cleaner, releasing 90 per cent less carbon dioxide than trucks. That's less smoke in our skies and cleaner air for us. This road-to-rail transition has saved us 2,857 crore litres of diesel, roughly translating to savings of Rs 2 lakh crore in fuel costs. India imports oil. Therefore, it makes strategic sense to electrify our transportation sector so that our dependence on imports is reduced. In the 60 years before 2014, Indian Railways electrified 21,000 km of track. And in the past 11 years, we have electrified 47,000 km. Today, 99 per cent of our broad-gauge network is electrified. Indian Railways is increasingly using green energy for stations, factories and workshops. Now, it is working with states to get more green energy for running the trains. This will all lead to India achieving its net zero goal. Building on this momentum, dedicated freight corridors (DFCs) are electrified, high-capacity railway lines designed exclusively for goods transport. With 2,741 km operational, DFCs have eased congestion on roads and significantly reduced diesel consumption and carbon emissions. India is also embracing modern, zero-emission technology like the hydrogen-powered train. The first train will run between Jind and Sonipat in Haryana and carry up to 2,600 passengers. It will be the most powerful and longest hydrogen train in the world. India is proving that economic growth and ecological responsibility can, and must, go hand in hand. According to the World Bank's Logistics Performance Index 2023, India now ranks 38 out of 139 countries, a jump of 16 places since 2014. The expansion of railway electrification has reduced costs and emissions. It has also increased speed and capacity, helping India move closer to world-class logistics standards. PM Modi set 2030 as the year to achieve net zero for Indian Railways. Due to the accelerated electrification and large-scale shifting of cargo from road to rail, Indian Railways is on track to achieve net zero (scope 1) within 2025. On this World Environment Day, Indian Railways reaffirms its commitment to sustainable development. Every electrified track, every solar panel placed, and every freight container off the road is a promise — to our people and our planet. The writer is Minister of Railways, Electronics and Information Technology, and Information and Broadcasting, Government of India
