India holds significant maritime potential, endowed with a 7,500 km long coastline and around 212 major and non-major ports. However, for decades, this potential remained underutilised due to infrastructural inefficiencies, limited last-mile connectivity and a lack of integrated planning. Recognising the strategic and economic importance of unlocking this coastal advantage, the Indian government launched the Sagarmala programme, a comprehensive nationwide initiative aimed at modernising ports, establishing coastal economic zones and lowering logistics costs through a robust framework of port-led development. This programme represents one of the most ambitious infrastructure transformations undertaken in recent years.
The maritime sector is not only vital for the movement of goods but also plays a critical role in employment generation, industrial development and national security. Through Sagarmala, India is enhancing physical infrastructure while also developing supportive policy reforms that position ports as catalysts of economic growth. The programme aims to align logistics development with industrial policy, promote sustainability and reinforce India’s competitiveness in global trade.
Overview of the Sagarmala programme
The Sagarmala programme is built on five strategic pillars – port modernisation, port connectivity, port-led industrialisation, coastal community development and coastal shipping, and inland water transport. This multi dimensional approach ensures that infrastructure expansion is synchronised with economic planning and social development. By connecting transportation networks with industrial corridors and community initiatives, Sagarmala adopts a holistic model of coastal development.
At present, 277 projects have been completed under the programme, with several others in advanced stages of implementation. Notable achievements include the commissioning of new berths at major ports, growth in coastal shipping and an increase in inland waterways cargo movement. Additionally, projects focused on cruise tourism and fisheries infrastructure are contributing to the vision of inclusive growth. These outcomes not only reflect the physical transformation of India’s port ecosystem but also highlight the institutional maturity of a model that integrates central and state agencies, the private sector and other stakeholders under a unified development mandate.
India’s ports currently handle around 1.3 billion tonnes of cargo annually, with nearly 90 per cent of the country’s trade by volume transported via sea. However, cargo movement remains unevenly distributed, with several ports experiencing congestion while others remain underutilised. The Sagarmala Programme aims to address these structural imbalances by enhancing port efficiency, enhancing multimodal connectivity, developing industrial clusters near ports and uplifting coastal communities through targeted interventions. More than just an infrastructure programme, Sagarmala serves as a national economic strategy aimed at boosting trade competitiveness, creating employment opportunities and unlocking regional growth.
Efficiency and economics of the Sagarmala programme
A key objective of the Sagarmala programme is to significantly reduce India’s logistics costs, which currently range between 14 and 18 per cent of the country’s GDP, substantially higher than the global benchmark of 8-10 per cent. Rather than relying solely on asset expansion, the programme emphasises data-driven planning, including data modelling and forecasting, and resource optimisation.
The programme also encourages strategic measures like shifting cargo movement from road transport to more cost-effective modes such as rail and inland waterways. The development of manufacturing hubs near ports is also being prioritised to reduce long-distance transportation and support bulk cargo movements more efficiently. These interventions aim to make cargo movement faster, more affordable and predictable, thereby enhancing ease of doing business and improving the global competitiveness of Indian exports.
The scale of Sagarmala’s ambition is reflected in the breadth of its project portfolio. Over 150 major projects have been identified across various categories, including port development, connectivity enhancement, logistics infrastructure, industrial zone development and shipbuilding capacity expansion. Significant initiatives include the construction of greenfield ports at strategic coastal locations, the mechanisation and berth expansion in existing ports, dredging to accommodate larger vessels, the development of inland waterway routes, and the creation of cruise terminals and coastal shipping infrastructure. Additionally, a strong emphasis is being placed on the development of green ports that utilise renewable energy and integrate sustainability practices into the design of maritime infrastructure to ensure environmental compliance.
Unlocking strategic capacity through new ports
One of the most critical dimensions of the Sagarmala programme is the identification and development of new port locations. These are being determined through traffic modelling, economic forecasting and demand simulation. Six new mega ports have been identified to collectively add a capacity of 700 million tonnes per annum (mtpa). Additionally, seven non-major ports currently under construction are projected to add another 380 mtpa.
Many key projects are being planned, including the greenfield ports at Vadhavan in Maharashtra, Tajpur in West Bengal and Bhavanapadu in Andhra Pradesh, to ease congestion at existing ports and align with emerging trade corridors. Transshipment ports like Vizhinjam in Kerala and Galathea Bay in the Andaman & Nicobar Islands are also being designed to reduce India’s dependence on foreign ports like Colombo and Singapore for container transshipment, thereby retaining greater economic value within the domestic ecosystem.
Smart and sustainable infrastructure
The Sagarmala programme also prioritises the development of smart and sustainable port infrastructure. These ports are designed to use digital tools for enhancing operational efficiency, reducing vessel turnaround time and improving safety standards.
On the sustainability front, port facilities are being equipped with renewable energy sources, shore power systems and comprehensive waste management solutions. Every project under the Sagarmala programme undergoes environmental and social impact assessments to ensure that development is aligned with ecological preservation and community welfare.
Addressing challenges
Despite the technical and economic rationale of the Sagarmala programme, its success is contingent on governance efficiency and coordination. Port development in India often involves multiple layers of approvals, from the central government to state governments and local regulatory bodies. Effective coordination among these stakeholders is essential for timely project execution.
A key opportunity lies in the strategic repurposing of non-performing assets, such as underutilised berths or terminals. This repurposing can result in more efficient resource allocation, improved port operations and potentially increased revenue generation. To ensure long-term viability, the government is working towards establishing a national master plan that integrates port development with industrial policy, transport infrastructure and regional development strategies to maintain synergy across these diverse efforts.
The road ahead for India’s port-led growth
The Sagarmala programme represents a strategic vision to redefine India’s approach to coastal development. It is not merely an infrastructure push, but also a transformational agenda that brings together engineering, economics, sustainability and governance into a cohesive framework. The success of this programme lies not only in the capital investment but also on the quality of decisions made guided by empirical data and environmental consciousness.
India’s port capacity is projected to rise to over 4,000 mtpa in the coming years. This growth will be driven through a mix of greenfield developments, capacity additions at non-major ports and technological upgrades at existing ports.
What distinguishes the Sagarmala programme is its integrated outlook, treating ports not as standalone assets but as vital cogs in a broader ecosystem that includes industrial corridors, logistics parks, inland waterways and social development initiatives. Net, net, the successful implementation of the programme will be instrumental in charting a course towards a sustainable, inclusive and efficient port ecosystem in India.
Based on remarks and a presentation by a representative from Royal Haskoning DHV at a recent Indian Infrastructure conference