India’s maritime sector is a vital driver of economic growth, anchored by over 11,000 km of coastline, 12 major ports, and more than 200 minor and intermediate port facilities. Nearly 90 per cent of the country’s trade by volume and 70 per cent by value moves through these ports, highlighting the critical importance of efficient and modern maritime infrastructure. At the core of sustaining and expanding this ecosystem is dredging, which ensures navigability, enables capacity expansion, and supports the development of both coastal and inland waterways. At a recent Indian Infrastructure conference, Captain S. Divakar, Chief General Manager, Dredging Corporation of India (DCI) Limited, shared his views on dredging market insights, dredging on inland waterways, the key challenges and future opportunities. Edited excerpts…
Scale and potential of dredging in India
The Indian dredging market is currently estimated at about 157 million cubic metres (mcum), dominated by maintenance dredging (110 mcum), and the remaining by capital dredging (47 mcum). At major ports alone, the annual dredging requirement is around 80 mcum, while the overall potential for maintenance dredging is approximately 120 mcum. The market presents a robust business opportunity, valued at Rs 25 billion-Rs 28 billion annually.
Against this backdrop, DCI’s operations are primarily focused on maintenance dredging, which constitutes nearly 70 per cent of the Indian market (about 77 mcum). In contrast, capital dredging constitutes about 10 per cent of DCI’s portfolio. This focus on maintenance dredging is critical to sustaining the navigability and operational efficiency of existing ports.
Looking ahead, India’s dredging market is expected to reach 200-250 mcum by 2030, driven by the development of new ports and greenfield maritime infrastructure, accelerated inland waterway modernisation, and large-scale reclamation projects for industrial hubs and coastal protection. These initiatives highlight the strategic role of dredging in supporting India’s maritime ambitions and strengthening its global trade position.
Globally, the dredging market is projected to grow at a CAGR of 4.4 per cent, rising from around $15.7 billion in 2022 to an estimated $21.4 billion by 2032. This growth will be fuelled by higher government expenditure on infrastructure, increasing investment in coastal tourism and expanding global trade routes.
DCI’s operational capacity and ongoing projects
DCI has long served as the backbone of India’s dredging industry, supported by an owned and operated fleet with a cumulative hopper capacity of 59,000 cubic metres (m³). The fleet comprises 10 trailing suction hopper dredgers (TSHDs), one cutter suction dredger, one backhoe dumb non-propelled dredger, one inland cutter suction dredger and auxiliary crafts for fleet support. This diversified fleet equips DCI to undertake a wide range of projects, including maintenance and capital dredging, reclamation works, beach nourishment and channel deepening across the country’s ports and waterways.
Dredging for inland waterways
India’s inland waterway network comprises 111 National Waterways (NWs), spanning more than 20,000 km. Of these, 23 waterways covering 5,200 km have been identified as suitable for mechanised craft movement, with 17 currently operational. Despite this vast natural asset, the sector’s contribution to India’s transport mix remains limited, with inland waterways accounting for only 2 per cent of the country’s overall modal split, well below the 8-15 per cent in more developed maritime economies.
To unlock its potential, the government has set ambitious targets to scale up inland waterways to 140 million metric tonnes per annum by 2030, supported by an expanded network of over 14,000 km. In line with this vision, DCI is actively positioning itself for growth. A key step is its MoU with the Inland Waterways Authority of India, focusing on dredging projects in the Northeast. This partnership is expected to expand critical infrastructure, enhance navigability and support regional economic development through improved inland water transport.
Key issues and challenges
Despite its significant growth potential, the Indian dredging sector continues to face several structural and operational challenges, which demand coordinated actions from both industry and policymakers. Key issues include a shortage of dredgers and ageing equipment, limited indigenous manufacturing, regulatory and contractual complexities, financial and investment barriers, and environmental compliance. Additional challenges include high operational costs, shortage of trained personnel, technical complexities in challenging environments and the need for forward-looking technology adoption.
Addressing these challenges through targeted policy support, investment incentives and technology partnerships will be critical for positioning the sector as a robust enabler of India’s maritime and waterway growth ambitions.
Policy support
The government has undertaken significant measures to strengthen and revitalise the dredging industry. A key policy intervention is the Maritime India Vision 2030, which sets out an ambitious roadmap to develop global standard ports, world-class mega ports and transshipment hubs, as well as enable comprehensive port modernisation.
Key flagship initiatives include:
- The Sagarmala Programme is unlocking opportunities for coastal shipping, port-driven industrialisation and integration of inland waterways. It has a pipeline of around 840 projects at an investment of approximately Rs 5.8 trillion by 2035.
- Project UNNATI has introduced over 116 efficiency initiatives at 12 major ports.
- The Make in India initiative promotes indigenous manufacturing of port and dredging equipment and incentivises private capital investment.
- The National Logistics Policy focuses on the holistic development of maritime logistics, multimodal integration and smooth cargo movement.
- There has been emphasis on new capacity creation and shallow waterways dredging. Alongside this, Rs 1 trillion has been allocated for the development of coastal economic zones.
DCI’s vision to transform into a global leader
DCI aims to evolve into a globally integrated dredging service provider, anchored on portfolio diversification, enhanced operational efficiency, knowledge management, technology adoption, brand building and treasury strategy.
Key priorities include:
- Fleet augmentation: Commissioning India’s largest dredger (12,000 m³ capacity) and the planned acquisition of two more TSHDs to reach 36,000 m³ of total hopper capacity by 2030.
- Diversification: Expansion into inland waterways dredging, reclamation works, de-silting of dams and reservoirs, and strategic entry into global markets via joint ventures.
- Digitalisation and automation: Operational efficiency gains through the adoption of advanced digital platforms and automation of key processes.
- Waste-to-wealth and sustainability: Beneficial use of dredged materials for land reclamation, beach nourishment and environmental restoration.
- Capacity utilisation: DCI plans to increase its capacity by 75,000 m³ and target 80-100 mcum of dredging by 2030.
Summing up
As the leading player in India’s dredging industry, DCI is positioned to consolidate its domestic leadership, while emerging as a global provider of integrated dredging solutions. Backed by fleet expansion, advanced technology adoption, innovative project management and strategic international partnerships, DCI will play a pivotal role in advancing the maritime ambitions of the nation.
