According to the Secretary of the Union Ministry of Ports, Shipping and Waterways, the Indian maritime sector needs an investment of $1 trillion by 2047 and ₹5 lakh crore by 2030 to achieve its full potential.
India’s Maritime Sector
- The backbone of India’s trade and commerce: India’s maritime sector handles nearly 95% of trade volume and 70% of trade value.
- India’s 7,500-km-long coastline: India has 13 major ports and over 200 minor ports. This makes India an important trading hub along the world’s busiest shipping routes.
- India is the 16th largest maritime nation in the world: India holds a dominant position in the maritime sector.
- India’s key location on global shipping routes: Most cargo ships that travel between East Asia to the US, Europe and Africa pass through India’s waters. This further increases India’s strategic importance.
Strengths of India’s maritime sector
Port capacity
- India’s major ports handle 820 million metric tonnes (MMT) of cargo annually, up 47% from 2014.
- Total port capacity has doubled since 2014 to 1,630 MMT.
- India’s port capacity is expected to grow sixfold to 10,000 MMT per annum by 2047. This will put India among the top 10 maritime nations in the world.
Mega ports
- Jawaharlal Nehru Port, India’s largest shipping facility, has crossed 10 million TEUs (twenty-foot equivalent units) container capacity.
- Vadhavan Port in Maharashtra is set to become India’s largest container facility.
- The proposed International Container Transshipment Port at Galathea Bay, Great Nicobar, will attract transshipment trade on major global routes.
- Modernisation boosts efficiency: As per the World Bank’s Logistics Performance Index (LPI) Report 2023, India is ranked 22nd in the “International Shipments” category, up from 44th in 2018.
Operational efficiency
- Container dwell time is now limited to three days.
- Ship turnaround time is now 0.9 days.
- Nine Indian ports feature in the World Bank’s Container Port Performance Index 2023. Visakhapatnam is among the top 20 ports in the world.
Maritime development
- New port projects: Vadhavan Port sanctioned at ₹76,220 crore, expected to boost EXIM trade.
- Fleet expansion plans: A new shipping company is being planned to add 1,000 new vessels by 2047.
- Increase in investments: US$ 82 billion will be invested in port infrastructure by 2035.
- Assistance in marine shipbuilding: Orders for 313 ships worth ₹10,500 crore have been received with financial assistance under SBFAP.