The Indian maritime sector has witnessed sustained momentum in recent years, driven by significant expansion in port capacity, proactive policy support, technological advancements and enhanced multimodal connectivity. These factors have collectively improved operational efficiency, streamlined trade facilitation and strengthened India’s positioning in the global maritime landscape.
Notably, advancements in cargo handling infrastructure and reductions in vessel turnaround times have contributed to increased traffic across Indian ports. Major ports continue to hold a dominant share, accounting for approximately 55 per cent of the total cargo traffic, while non-major ports contribute the remaining 45 per cent.
During the year 2025-26, major ports recorded a growth of 7 per cent compared to the growth in 2024-25. Meanwhile, non-major ports registered a comparatively moderate growth of 1.44 per cent during the same period. In terms of cargo composition, Indian ports primarily handle petroleum oil and lubricants (POL) and crude products, containerised cargo and coal, including thermal, coking and other variants. Additionally, national waterways (NWs) demonstrated robust performance, handling 198.09 million tonnes (mt) of cargo during April-February 2025-26, reflecting a growth of 35.8 per cent.
Capacity augmentation has remained a key focus area to support rising trade volumes. As of December 2025, the cargo handling capacity of major ports stood at 1,717.9 mt, while non-major ports reached 1,090.29 mt, underscoring continued infrastructure development across the sector.
Policy measures and update on the Sagarmala programme
The Union Budget 2026-27 has provided a strong support to India’s ports and shipping sector, with the Ministry of Ports, Shipping and Waterways (MoPSW) receiving an allocation of Rs 51.65 billion (budget estimate). The budget also emphasises coastal shipping and inland waterways to promote a modal shift from road to cheaper and greener transport systems. Further, policy support has been extended to the container manufacturing and ship repair ecosystem.
The government has focused on strengthening the maritime ecosystem through legal mechanisms, by modernising port governance laws with a more integrated and business-friendly framework. To this end, Parliament has passed various bills in the past one year. These include the Indian Ports Bill, 2025, the Coastal Shipping Bill, 2025, the Carriage of Goods by Sea Bill, 2025, the Merchant Shipping Bill, 2025 and the Bills of Lading Bill, 2025.
In addition, the Indian government is planning to introduce a Rs 92.8 billion scheme to develop water metro systems across the country. The scheme is a part of the draft National Water Metro Policy 2026 prepared by the MoPSW. The programme aims to introduce modern water-based public transport in multiple cities with navigable waterways, easing congestion, lowering emissions and improving connectivity. Electric or hybrid vessels will be indigenously built, supporting domestic shipbuilding and promoting green mobility.
Under the Sagarmala programme, about 315 projects have been completed, while 210 are currently under implementation and another 320 are in the planning phase (as of March 2026). Meanwhile, the programme has witnessed the completion of 120 port modernisation projects, adding over 400 million tonnes per annum (mtpa) of new port capacity. Completion of these projects has strengthened the country’s maritime trade competitiveness. The government is now advancing with the Sagarmala 2.0, which will be a strategic upgrade focusing on shipbuilding, shiprepair, shipbreaking and shiprecycling.
Major trends transforming the sector
PPP and asset monetisation
The role of public-private partnerships (PPPs) in Indian ports has started to expand in recent years, driven by policy reforms and increasing investment requirements. Major ongoing projects such as the Vizhinjam International Container Transhipment Terminal (Phases II and III), Multipurpose Cargo Berth at Tuna Tekra (Deendayal Port), the Outer Container Terminal, Berths 1-5 (Netaji Subhash Dock) at the Kolkata Dock System highlight a shift towards large-scale PPP developments.
To further strengthen the PPP framework, the government plans to offer around 30 port projects, valued at approximately Rs 1 trillion, to private investors by 2030. These initiatives are focused on modernisation, mechanisation and capacity expansion, with the objective of enhancing operational efficiency, attracting private capital and accelerating port-led economic development.
The central government has also set an asset monetisation target of Rs 2,637 billion for ports under the National Monetisation Pipeline (NMP) 2.0 for 2025-26 to 2029-30. This is 15.77 per cent of the total monetisation value of Rs 16,723 billion allocated across 12 sectors, including road transport and highways, power, petroleum and natural gas, civil aviation, ports, warehousing and storage, urban infrastructure, coal, mines, telecom and tourism.
Advancing through digitalisation
Indian ports are increasingly adopting advanced technologies, including automation, artificial intelligence (AI), drones and digital platforms to enhance operational efficiency, strengthen security and improve global competitiveness. In a significant technological advancement, the V.O. Chidambaranar Port Authority has become the first Indian port to implement a digital twin for port management. Building on this momentum, the Jawaharlal Nehru Port Authority (JNPA) is advancing the adoption of digital twin technology to further modernise and optimise port operations.
Additionally, the deployment of non-intrusive scanning systems, supported by advanced imaging and AI-driven risk assessment, is being expanded in a phased manner. The objective is to enable comprehensive scanning of all containers across major ports, thereby enhancing security, transparency and efficiency in cargo handling.
Sustainable shipping and decarbonisation
Under the National Green Hydrogen Mission, Deendayal, Paradip and V.O. Chidambaranar ports were formally designated as green hydrogen hubs, in 2025. Implementation has since progressed, with both pilot and commercial initiatives gaining traction. Deendayal Port has commissioned India’s first port-based green hydrogen plant, while V.O. Chidambaranar Port has operationalised on-site hydrogen production and usage. In addition, green hydrogen and ammonia handling facilities at Paradip are being developed to support production, storage and export.
Several ports have also expanded solar and wind generation, installed covered storage and dust-control systems and increased the share of renewable energy in their overall electricity consumption to reduce local air pollution and the carbon footprint. Other key initiatives undertaken in recent years include the Green Tug Transition Programme, Panch Karma Sankalp and the Harit Sagar Green Port Guidelines. These efforts support India’s ambition to become a global leader in green hydrogen and maritime decarbonisation, positioning the country at the forefront of clean energy production, low-carbon shipping and sustainable port operations.
Enhancing coastal shipping and inland waterways
Coastal shipping in India is witnessing a policy-driven resurgence, supported by cost advantages and sustainability benefits. It is being integrated with the road, rail and inland waterway networks, positioning it as a critical pillar in improving supply chain efficiency.
The inland waterways segment is also witnessing rapid growth, supported by increased infrastructure investment and growing multimodal integration. The Jalvahak Scheme acts as a demand-side incentive, accelerating the shift towards inland waterways. Currently, there are 32 operational NWs, spanning approximately 5,155 km. In addition, 20 new NWs have been proposed for operationalisation by 2031. NW-57 (River Kopili) was operationalised in August 2025, marking the resumption of intra-state waterborne freight transport in Assam after more than a decade. Further, the Sutlej river has been designated as NW-98. There has also been a strong focus on the development of waterways in the Northeast, with investments exceeding Rs 30 billion.
Building resilience against global headwinds
Amid persistent global uncertainties, India’s major ports are handling record cargo volumes, underscoring the resilience of the country’s maritime ecosystem and the effectiveness of strengthened grievance redressal mechanisms. This performance reaffirms the government’s commitment to ensuring efficient, transparent and robust trade facilitation, despite external disruptions.
In line with this approach, the Indian government has extended the implementation of its decision to roll back the cabotage waiver by six months. Originally scheduled post April 2026, the rollback would have withdrawn relaxations permitting foreign-flagged vessels to transport select domestic and export-import cargo along the coast. The extension provides interim relief to shipping lines and port operators, while allowing additional time for a calibrated transition towards promoting Indian-flagged vessels and enhancing domestic maritime capacity. Besides, JNPA is waiving storage charges for containers held beyond free periods at Nhava Sheva, while the Container Corporation of India is offering discounts on reefer container handling, benefiting exporters of perishable goods such as seafood and pharmaceuticals. These time-bound measures target cargo delayed or rerouted due to disruptions in West Asian shipping routes.
Opportunities galore
Marina development at Indian ports is emerging as a high-potential segment, driven by the growth in coastal tourism, cruise traffic and demand for recreational boating. In this regard, the central government’s approval of a Rs 8.87 billion project to develop world-class marina in Mumbai Harbour marks a significant step.
Beyond marinas, substantial opportunities exist across ship design, modernisation and shipbuilding infrastructure, enabling India to progressively reduce reliance on foreign players and strengthen domestic capabilities. During the India Maritime Week 2025, the sector attracted record investments exceeding Rs 12 trillion, of which about 20 per cent was directed towards shipbuilding. Concurrently, technological advancements, increased mechanisation and continuous port upgradation remain critical to enhancing operational efficiency and overall infrastructure resilience. The Sagarmala programme continues to unlock investment opportunities across the maritime and logistics sectors, reinforcing the vision of port-led economic development.
Looking ahead, the trajectory of the maritime industry will depend on balancing growth objectives with environmental sustainability. While short-term risks from global trade volatility persist, a cohesive policy framework, deeper international collaboration and a sustained focus on innovation are expected to position India as a leading force in the global maritime landscape.
Sidra Siddiquie
