Despite the uncertainties triggered by the tariff war and the slowdown during the pandemic, India’s port sector promises to go from strength to strength. The maritime landscape is driven by policy ambitions, clearly articulated in the Maritime India Vision and the Amrit Kaal Vision as well as in schemes such as Sagarmala and Jalvahak, which promotes the development of inland waterways cargo.
The implementation of the “One Nation, One Port” policy has been a crucial step in standardising procedures across ports. The visible trends include steady capacity additions, growing presence of private operators, the induction of technology and digitisation across all areas, and a strong focus on sustainability.
India lies on some of the most important global trading routes, and over 90 per cent of India’s trade by volume travels by sea. Apart from investing in port capacity, policymakers have to tackle other challenges. They must ensure smooth connectivity between ports and the hinterland, goods must be processed through Customs with minimal delays, and all operations should pay heed to the need for decarbonisation.
Legislative support is forthcoming. Recent bills passed by the Lok Sabha include the Carriage of Goods by Sea Bill, 2024 and the Coastal Shipping Bill, 2024. Also, the MoPSW has introduced the Indian Ports Bill, 2025, in the Lok Sabha. Together, they aim to upgrade the dated provisions of earlier legislations and mandate a modern, strategic plan for the shipping sector. The Sagarmala Programme has seen the completion of 272 projects at an investment of about Rs 1.41 trillion. The cargo promotion scheme, Jalvahak, was launched in December 2024 to incentivise the movement of long-haul cargo via inland waterways.
Sustainability is a top priority. APM Terminals has reduced its carbon footprint by 40 per cent by transitioning to solar energy. The sector is also looking at investments into new green fuel. V.O. Chidambaranar Port aims to become a green hydrogen-ammonia hub. Paradip and Kandla are among several other ports looking at green hydrogen.
The sector is also adopting other advanced technologies and sustainable practices. Technologies such as port community systems and terminal automation, the internet-of-things, blockchain, artificial intelligence (AI) and digital twins are becoming popular. Cargo handling is increasingly utilising automated guided vehicles and rubber-tyred gantry cranes, thus improving operational efficiency, reducing labour costs and enhancing safety.
Ports are using sensor-based monitoring systems to gather real-time data on equipment downtime, weather forecasts, etc. The introduction of 5G-based, AI-powered analytics could help in further reducing bottlenecks, enhancing predictive analytics for future cargo flows and supporting crisis management.
Sagarmala 2.0 will focus on shipbuilding, repair, breaking and recycling. It will be kickstarted with Rs 400 billion in budgetary support. It aims to push investments of Rs 12 trillion into these areas over the next decade.
Private enterprise has brought knowhow and improvements in efficiency. Major players in terminal operations have become customer-centric hubs. By minimising turnaround times for ships and improving berth availability, port operators can create a positive ripple effect that reduces friction in logistics and improves the competitiveness of Indian trade. Indian Customs has also embraced digital technology, with some success, in an ongoing attempt to simplify procedures, reduce clearance times and enhance transparency. A major milestone is the reduction of transit times by 30 per cent at Mumbai Port, for instance.
Another area where demand is continuously growing is dredging requirements, since this is directly correlated to the expansion of cargo capacity. Environmental concerns have to be managed carefully even as dredging activities increase, because it can impact marine ecosystems adversely. The cargo handling capacity at Indian ports is targeted to increase to over 3,500 mmtpa by 2030 under the Maritime India Vision, and to 10,000 mtpa by 2047 under Amrit Kal.
Due to its direct links to global trade and the ongoing tariff war, the sector may have to ride out a turbulent phase this year. But the long-term trend towards sustainable growth in capacity and efficiency should be maintained.