India’s maritime landscape has witnessed significant transformation over the past decade. The sector is adopting advanced technologies and sustainable practices to enhance port operations. It has also strengthened its global supply chain. Further, the Ministry of Ports, Shipping and Waterways (MoPSW) is working to transform the ports and shipping sector through initiatives such as Maritime India Vision 2030 and Amrit Kaal Vision 2047.
Surge in cargo traffic and increase in capacity
Over the years, improvements in cargo capacity handling, reduction in turnaround time and advancements in shipments have contributed towards the growth in traffic at Indian ports. Major ports account for around 53 per cent of the overall traffic, while non-major ports account for around 46 per cent of the overall traffic handled at ports, respectively. Between 2020-21 and 2024-25, major ports and non-major ports had a notable increase in cargo volume, growing at a compound annual growth rate of about 4.88 per cent and 5.08 per cent, respectively.
During 2024-25, major ports handled 853.57 mt of traffic, compared to 819 mt in 2023-24, registering a growth of 4.22 per cent. In terms of commodities at major ports, petroleum, oil and lubricants (POLs) and crude products accounted for the highest share in traffic at 29.63 per cent, followed by container traffic at 22.66 per cent and coal at 21.83 per cent. In the meantime, traffic handled at non-major ports increased from 723.41 mt in 2023-24 to 739.47 mt in 2024-25, an increase of 2.22 per cent. With regard to commodities at non-major ports, coal accounted for the highest share in traffic at 27.22 per cent, followed by POL and crude products at 27 per cent and containers at 21.35 per cent, during the same period.
The cargo handling capacity at major ports has doubled over the past decade and reached 1,630 mtpa, as of March 2024. Meanwhile, capacity at non-major ports stood at 1,081 mtpa. The capacity utilisation levels at major and non-major ports are 50.2 per cent and 66.9 per cent, respectively.
Policy moves and government initiatives
The government has taken various initiatives to boost the maritime industry. In an attempt to modernise ports, update the legal framework and enhance ease of doing business in India’s maritime sector, Lok Sabha has recently passed the Carriage of Goods by Sea Bill, 2024. This bill, not only aims to promote investor confidence but also bodes well for the country’s Viksit Bharat vision. The Lok Sabha also passed the Coastal Shipping Bill, 2024, on April 3, 2025. This bill provides a legal framework, while upgrading the dated provisions of earlier legislations and mandates the formulation of a national coastal and inland shipping strategic plan, and establishes a national database for coastal shipping. Furthermore, the MoPSW introduced the Indian Ports Bill, 2025, in Lok Sabha. This bill is aimed at consolidating laws related to port management, promoting integrated port development and enhancing ease of doing business in the maritime sector. It aims to optimise the utilisation of India’s vast coastline by establishing and empowering state maritime boards to ensure effective management of ports other than major ports.
Prior to this, a cargo promotion scheme, “Jalvahak” was launched in December 2024, incentivising movement of long-haul cargo via inland waterways. It provides reimbursement up to 35 per cent of the total operating expenditure incurred, while transporting cargo via waterways on national waterway (NW) 1, NW 2 and NW 16 via Indo-Bangladesh Protocol route, over distances exceeding 300 km. Further, it encourages cargo owners to hire vessels owned or operated by organisations other than the Inland Waterways Authority of India (IWAI) or Inland and Coastal Shipping Limited. The scheme is initially valid for three years. Besides, the National Waterways Regulations, 2025, formulated by IWAI, have been introduced for the construction of jetties and terminals by various entities, including private, public and joint ventures, on national waterways across the country.
On the public financing front, the MoPSW has received an allocation of Rs 34.71 billion (budget estimate) under the Union Budget 2025-26. This allocation is 21.41 per cent higher than the revised estimate of Rs 28.59 billion for financial year 2024-25. Further, a Maritime Development Fund with a corpus of Rs 250 billion has been proposed to set up for long-term financing, with up to 49 per cent contribution by the government.
Digital innovations and decarbonisation
In line with the ongoing trend, ports are adopting new digital technologies, such as autonomous systems, integrated information and communications platforms to efficiently monitor vessels and enhance delivery of cargo and customs procedures.
The “One Nation One Port” (ONOP) initiative has been launched to standardise and streamline port procedures, processes and documentation nationwide. This initiative involves a comprehensive review of existing procedures and documents exchanged across the port value chain at all major ports. Besides, the Digital Container Shipping Association has released the final versions of its Booking 2.0 and Bill of Lading 3.0 standards to streamline data exchange, enhance security and improve regulatory compliance in container shipping. Key upgrades include digital signatures for electronic bill of lading security, introduction of more than 190 new attributes to shipping instructions to support ICS2 (import control system 2), and improved visibility for booking and shipping documents, among others.
Smart technologies are also being adopted to improve dredging efficiency. The use of artificial intelligence is gaining traction. In order to enhance India’s dredging sector with advanced equipment and technology, BEML has recently signed an agreement with Dragflow Italy.
Furthermore, the Indian Ports Association signed an MoU with C3iHub-Indian Institute of Technology (IIT) Kanpur, to transform the country’s ports into world-class smart ports. This collaboration focuses on advancing automation and establishing robust cybersecurity frameworks to safeguard digital assets.
Moreover, India and Singapore have signed a letter of intent to collaborate on maritime digitalisation and decarbonisation, aiming to enhance technological advancements and green initiatives in the shipping sector. Once established, the Singapore-India green and digital shipping corridor will enhance collaboration from both countries and help accelerate the development and uptake of zero or near-zero greenhouse gas emission technologies and the adoption of digital solutions.
In a notable attempt toward energy transition, V.O. Chidambaranar Port has earmarked around Rs 418.6 billion, aimed at transforming itself as the green hydrogen-ammonia hub of the country. Currently, a pilot demonstration for the production of green hydrogen, storage and power generation using fuel cells is under progress. Besides, electrolysers were flagged off for the 1 MW green hydrogen plant at Deendayal Port, Kandla. These electrolysers will be used to produce green hydrogen, which will support the country’s goal of reducing carbon emissions and promoting sustainable energy solutions.
Recent asset acquisitions
There has been increasing investor interest in the port sector assets. Through various acquisitions, Adani Ports and Special Economic Zone has been expanding its presence. It has entered into a definitive agreement to purchase a 95 per cent stake (56 per cent of Shapoorji Pallonji Group and 39 per cent of Orissa Stevedore Limited) in Gopalpur Port Limited at an enterprise value of Rs 30.8 billion. This transaction was completed in October 2024. The company has also entered into a definitive agreement to acquire an 80 per cent stake in Astro Offshore, for approximately Rs 15.5 billion.
Emerging segments and the vision ahead
A major initiative, Sagarmala 2.0, is being planned, which will focus on shipbuilding, repair, breaking and recycling. Backed by Rs 400 billion of budgetary support, it aims to drive investments worth Rs 12 trillion over the next decade. Further, it will help position India among the world’s top five shipbuilding nations by adding 4 million GRT (gross registered tonnage) of shipbuilding capacity and expanding the port-handling capacity to 10 billion mt annually.
Cruise tourism is also an emerging segment. To boost the tremendous potential of cruise tourism in the country, the Cruise Bharat Mission has been launched from the Mumbai Port in September 2024. Phase 1 (October 1, 2024 till September 30, 2025) focuses on conducting studies, master planning and forming cruise alliances with neighbouring countries. Phase 2 (October 1, 2025 till March 31, 2027) will concentrate on developing new cruise terminals, marinas and destinations to activate high-potential cruise locations and circuits. Finally, Phase 3 (April 1, 2027 till March 31, 2029) will focus on integrating all cruise circuits across the Indian subcontinent, marking the maturity of the cruise ecosystem, while continuing the development of cruise terminals, marinas, etc. Interestingly, with India’s drive to becoming a global tourism destination, the MICT (Mumbai International Cruise Terminal) has been recently inaugurated after eight years of construction with an investment of Rs 5.56 billion.
Moving ahead, India’s maritime sector is poised for significant growth, driven by strategic government initiatives and support. Meanwhile, there is a need for the logistics system to be more conducive to handle the current bulk cargo traffic at ports.
Sidra Siddiquie