India’s ports and shipping sector is undergoing a structural transformation with a focus on enhancing capacity, port-led connectivity, digitalisation, automation, and green initiatives. Investments in transshipment infrastructure, inland waterways, and shipbuilding and repair are further strengthening its maritime capabilities. These developments are enhancing supply chain resilience, improving efficiency and reducing logistics costs, while creating opportunities for the country to play a larger role in global trade, maritime services, and emerging green shipping networks.
Increasing cargo traffic and capacity enhancement
An improvement in cargo handling capacity, a reduction in turnaround time, and advancements in shipments have contributed to growth in traffic at Indian ports. Major ports account for 54-56 per cent of the overall traffic handled at Indian ports while non-major ports contribute 44-46 per cent.
During 2025-26, major ports registered a growth of 7 per cent (handling 914.73 million tonnes [mt]), and non-major ports registered a 1.4 per cent growth (753.07 mt) as compared to 2024-25. Further, during April-June 2026, major ports recorded a growth of 6.18 per cent (233.64 mt) while non-major ports saw a decline of 0.64 per cent (184.69 mt) as compared to the corresponding period of the previous year. The increase in cargo traffic has been driven by stronger demand, modernisation efforts and improved operational efficiency. Indian ports primarily handle petroleum oil and lubricants (POL) and crude products, containerised cargo and coal, including thermal, coking and other variants.
Meanwhile, the cargo handling capacity at both major and non-major ports has increased steadily to cater to growing trade volumes. While the capacity of major ports increased to 1,717.9 mt as of December 2025, non-major ports reached 1,090.29 mt as of September 2025.
With the expansion of maritime logistics, traffic at inland waterways is increasing at a faster pace from a much smaller base. During 2025-26, the national waterways (NWs) saw cargo movement surge to 218.24 mt, reflecting a significant growth of 49.64 per cent vis-a-vis the previous year’s 145.84 mt. Further, during April-June 2026-27, NWs handled 55.91 mt of traffic, an increase of 55 per cent as compared to the corresponding period in 2025-26 (36.13 mt). At present, there are 32 operational NWs, spanning about 5,155 km. Further, 20 new NWs are proposed to be operational by 2031. Combined with coastal shipping, the long-term goal is to increase the modal share of waterways from 6 per cent to 12 per cent by 2047, reducing the dependence on road transport. To support this, the government will operationalise NW-5 in Odisha to connect the mineral-rich regions of Talcher and Angul with industrial centres such as Kalinga Nagar, as well as with the Paradip and Dhamra ports. A dedicated ship repair ecosystem for inland waterways will be set up in Varanasi and Patna.
Digital advancements
Indian ports are undergoing a major digital transformation, leveraging technology to improve efficiency, reduce turnaround times, enhance transparency, and strengthen India’s position in global logistics. V.O. Chidambaranar Port, Tuticorin, has introduced a digital twin platform that integrates internet-of-things (IoT) sensors, the global positioning system, LiDAR, drones, and CCTV to create a real-time virtual view of port operations, thereby optimising berth planning, equipment monitoring, and predictive maintenance. The port expects the system to potentially reduce vessel turnaround times by up to 25 per cent. Jawaharlal Nehru Port (JNP) has adopted NIVIDA, an artificial intelligence (AI)-based tender evaluation system, while its indigenous integrated vessel traffic system (iVTS) provides real-time vessel information and improves coordination among port stakeholders. JNP is also moving forward with the adoption of digital twin technology to modernise and optimise its operations.
Furthermore, the Indian Register of Shipping (IRS) and Neptunus Power Plant Services Private Limited have signed an agreement to develop indigenous condition-monitoring technology for marine engines, under the government’s “Make in India” initiative. Under this partnership, IRS has granted Type Approval Certification to two Neptunus systems, the “VIB 360” engine-condition monitoring platform and “Torque Sense SHAPOLI” for propulsion-system analytics, making them the first IRS-certified locally developed solutions for marine diesel and propulsion systems. By shifting from fixed original equipment manufacturer (OEM) maintenance schedules to predictive monitoring, these technologies are helping reduce downtime, improve reliability, cut maintenance costs by up to 30 per cent, and improve fuel efficiency. In addition, Swan Defence and Heavy Industries Limited and global ship classification leader DNV have signed a strategic partnership to strengthen India’s shipbuilding and maritime technology ecosystem. The collaboration will focus on advanced ship design, digital transformation, cybersecurity, green shipping technologies, and modern ship repair infrastructure.
Promoting sustainable and green port operations
Indian ports are moving from conventional green compliance towards integrated green-port ecosystems, combining renewable energy, clean fuels, electrification, circular resource use, and lower-emission logistics. Ports are also integrating solar and wind power to reduce their dependence on conventional electricity. New Mangalore Port achieved 100 per cent solar power integration in 2025, setting a benchmark for renewable energy adoption. Other initiatives include the adoption of covered sheds for bulk cargo and switching a notable portion of power demand to renewables in ports along the Maharashtra and Goa coasts.
Notably, Deendayal, Paradip and V.O. Chidambaranar (VOC) ports have been recognised as green hydrogen hubs. At VOC port, a green hydrogen pilot project was commissioned in September 2025 to power street lighting and EV charging. India has also announced its first national shore-power standard, enabling ships to draw electricity while at berth and thereby cut emissions from auxiliary engines during port stay. Ports such as Jawaharlal Nehru Port have started transitioning to battery-powered trucks and electric logistics systems as part of a pathway to zero-emission cargo handling.
Under the Maritime India Vision 2030, the government is targeting to achieve over 60 per cent renewable energy use, 50 per cent electrification of port equipment, 30 per cent lower CO2 emissions per tonne of cargo, and 20 per cent lower freshwater consumption per tonne of cargo.
Increasing focus on shipbuilding and ship repair
India’s shipbuilding and ship repair industry is entering a new phase of expansion, supported by government policy, large-scale maritime infrastructure investment, and the development of specialised industrial clusters. To this end, the Maharashtra government approved the Shipbuilding, Ship Repair and Ship Recycling Policy, 2025, and the Tamil Nadu government has recently unveiled the Shipbuilding Policy 2026, aiming to position the state as a global hub for sustainable shipbuilding and advanced maritime technology.
A recent development is the National Shipbuilding Mission (NSbM) granting in-principle approval for the development of a mega shipbuilding cluster at Dighi in Maharashtra. The proposed cluster will comprise one or more large shipyards with an estimated total shipbuilding capacity of 2 million gross tonnage (GT) per annum, along with ship repair facilities and supporting maritime infrastructure at an estimated cost of Rs 275 billion. Another notable step was the creation of a national mega shipbuilding cluster at Dugarajapatnam in Tirupati, Andhra Pradesh. In March 2026, the Andhra Pradesh Maritime Board and Visakhapatnam Port Authority signed an agreement to establish a 50:50 joint venture, National Shipbuilding & Heavy Industries Park Andhra Pradesh Limited, to develop the cluster. Also, the MoPSW granted in-principle approval for a greenfield shipbuilding cluster across nearly 2,000 acres at Kuchhadi, Porbandar, Gujarat, with an annual capacity of 1.2–1.5 million GT.
In addition, the government has approved financial assistance of Rs 15.7 billion for a ship repair facility at Vadinar. Equipped with modern docks and marine infrastructure, the facility will enable the domestic repair of large vessels, reducing reliance on foreign shipyards. Ship repair capabilities are also expanding beyond coastal locations into inland waterways. The Inland Waterways Authority of India is developing a dedicated network of repair facilities, with additional capacity planned at Pandu in Guwahati to serve vessels operating on the Ganga, Brahmaputra and Barak river systems.
As part of a broader strategy to expand capacity, Goa Shipyard Limited is planning to establish a new shipbuilding facility at Jaigarh in Maharashtra. It has identified nearly 660 acres of intertidal land for the project and plans to appoint Germany-based Inros Lackner SE as the project consultant. In addition, Cochin Shipyard will invest around Rs 20 billion to establish a new shipbuilding and repair facility at VOC Port. This facility will be located adjacent to the proposed mega greenfield shipbuilding cluster at Thoothukudi, where South Korea’s HD Hyundai Heavy Industries will serve as the anchor yard. These developments reflect the government’s focus on creating dedicated industrial infrastructure capable of supporting shipbuilding, heavy engineering, and associated maritime industries.
Emerging opportunities and the path forward
Port connectivity is emerging as a major opportunity for India’s maritime sector, driven by increasing investment in seamless links between ports, industrial clusters, consumption centres and logistics hubs through road, rail and inland waterways. Recent initiatives include an MoU between the Container Corporation of India and PSA Mumbai to strengthen rail-based cargo movement between ports and inland terminals. Maharashtra is also advancing plans to connect JNPA and Vadhavan Port with inland freight corridors and the Samruddhi Expressway network, thereby improving access to major industrial and manufacturing clusters. These developments are expected to support faster cargo evacuation, improve supply chain efficiency, and reduce overall logistics costs.
Cruise tourism is another growing opportunity, supported by policy reforms, infrastructure development, and efforts to position India as an attractive international cruise destination. The country’s participation in Seatrade Cruise Global 2026 provided a platform to showcase its coastal, island, and river cruise potential to global cruise operators and itinerary planners. The recent abolition of customs overtime charges for international cruise passengers at designated ports is expected to reduce operating costs and streamline passenger handling. Under the Sagarmala initiative, India is targeting 1 million cruise passengers by 2029, supported by improved cruise terminals, tax reforms and regulatory measures. Together, these initiatives will expand the country’s role in global cruise tourism while creating opportunities across port infrastructure, hospitality, tourism services, coastal destinations, and local economies.
Looking forward, India is poised to emerge as a key player in the global maritime industry, supported by its strategic location along major East-West trade routes, its extensive coastline, and a significant share in global seaborne trade. The country is increasingly positioning itself as a regional maritime and logistics hub, connecting global markets across Asia, Europe, Africa and the Middle East. Moreover, expanding into ship repair, coastal shipping and maritime services will strengthen the country’s role beyond cargo handling.
Sidra Siddiquie
