India is gaining prominence in the global maritime industry, with its extensive coastline, significant maritime trade and a growing focus on sustainability. The ports and shipping sector is undergoing structural transformation through capacity expansion, technological advancements and modernisation initiatives aimed at improving connectivity and reducing turnaround time.
Rising cargo traffic and capacity augmentation
Traffic at Indian ports has increased in recent years due to improvements in cargo capacity, shorter turnaround times and technological breakthroughs. Major ports handle about 54 per cent of overall port traffic, while non-major ports account for 46 per cent. The share of major ports has been declining as non-major ports are able to provide better efficiency and lower turnaround times at competitive rates. This trend reflects the increasing dominance of non-major ports, driven by policy reforms, greater private investments and infrastructure improvements.
During April-June 2025, major ports handled 220.04 million tonnes (mt) of traffic compared to 208.4 mt in the corresponding period in 2024, registering a growth of 5.59 per cent. In terms of commodities at major ports, petroleum, oil and lubricants (POLs) and crude products accounted for the highest share (29.57 per cent), followed by container traffic (23.34 per cent) and coal (22.87 per cent). During the same period, non-major ports handled 185.87 mt of traffic, compared to 184.5 mt in the previous year, a marginal increase of 0.74 per cent. With respect to commodities, coal accounted for the highest share (30.47 per cent), followed by POL and crude products (26.53 per cent) and containers (20.48 per cent) during the same period.
Over the years, cargo handling capacity at both major and non-major ports has steadily increased to cater to rising internal and external trade volumes. While the capacity of major ports increased to 1,651.46 mt as of December 2024, non-major ports reached 1,084.73 mt as of September 2024.
Inland waterways in India are increasingly recognised as a promising, cost-effective and eco-friendly alternative to road and rail transport, though their uptake remains limited. India aims to increase the modal share of inland water transport from the current 2 per cent to 5 per cent in the coming years. During 2024-25, national waterways (NWs) carried 145.84 mt of traffic, up from 133.03 mt in 2023-24, reflecting a growth of 9.63 per cent. Major commodities such as coal, iron ore, iron ore fines, sand and fly ash constituted more than 68 per cent of the total cargo moved on NWs during the year.
Technology-driven growth momentum
Indian ports are increasingly embracing advanced technologies, such as automation, artificial intelligence (AI), drones and digital platforms, to drive efficiency and global competitiveness. Recently, New Mangalore port introduced drone surveillance, automated weighbridges, e-kart systems and a security monitoring tower to enhance logistics, safety and emergency response. Similarly, Mumbai port is exploring a hybrid 5G model by integrating public and private networks, aimed at revolutionising communications infrastructure.
The Ministry of Ports, Shipping and Waterways (MoPSW) has prioritised the digitalisation and automation of port processes and documentation through the National Logistics Portal Marine (NLP-Marine). Further, it has introduced the “One Nation One Port” (ONOP) initiative to streamline and standardise port procedures and documentation across all major ports. This initiative involves a comprehensive review of existing processes for various cargo types, including containers, dry bulk, and liquid bulk, as well as different movement categories such as export-import, transshipment and coastal operations.
Meanwhile, the recently launched Sagar Setu platform integrates multiple service providers to provide seamless export-import-related services. Further, MoPSW and the Centre for Development of Advanced Computing have signed an MoU to establish a digital centre of excellence. The centre will provide advanced information technology solutions, foster innovation and support the modernisation of port operations and shipping logistics through AI, internet of things (IoT) and blockchain. The government has also launched the DRISHTI (Data-driven decision support Review Institutional Information System for Hastening and Tracking Implementation) framework to improve efficiency.
Other initiatives include the introduction of the Bharat Global Ports Consortium to strengthen global trade and the MAITRI (Master Application for International Trade and Regulatory Interface) app to streamline trade processes. Together, these digital and automation initiatives have helped reduce dwell times, enhance transparency and accelerate the sector’s transformation.
Promoting private sector participation
The government is encouraging private sector participation through public-private partnerships (PPPs) to modernise port terminals, improve logistics and enhance overall competitiveness in global trade. PPPs have contributed to the overall growth of the sector, facilitating investments of around Rs 550 billion over the past 25 years. Currently, about 50 per cent of major ports operate under PPPs. This share is expected to increase to around 85 per cent over the next decade.
Among various PPP models, the landlord model has emerged as a preferred approach. Jawaharlal Nehru Port is India’s first landlord port. Other variants of PPPs being implemented include the build-operate-transfer and design-build-finance-operate-transfer models. Successful optimisation depends on effective risk allocation, consistent regulatory frameworks, adaptable concession agreements, and transparent monitoring and governance.
Recently, Indian ports have started adopting the operations and maintenance (O&M) model as an alternative to the PPP format for berth privatisation. This model provides shorter contracts of 5-10 years, allowing ports to maintain greater control while minimising legal risks. For instance, the Visakhapatnam Port Authority shifted its East Quay 1A berth from a failed PPP model to the O&M model, resulting in higher revenues. Private stakeholders note that O&M contracts are better suited for small-scale brownfield projects. For larger ventures that demand substantial capital investment and new infrastructure, the PPP model remains indispensable, as many ports lack the financial resources to support such major developments independently.
Unlocking green initiatives
As part of India’s National Green Hydrogen Mission, the Deendayal, Paradip and V.O. Chidambaranar ports have been identified as green hydrogen hubs. These ports are being developed to facilitate the production, storage and export of green hydrogen, positioning India as a global leader in this emerging energy segment. Recently, a 1 MW green hydrogen power plant was inaugurated at Deendayal Port. Implemented by Larsen & Toubro, the project is capable of producing about 140 metric tonnes of green hydrogen annually once completed. Further, it is set to scale to 10 MW in the future. The Deendayal Port Authority has also joined the Methanol Institute, a global trade association dedicated to promoting methanol as a sustainable marine fuel. It is also establishing a centre of excellence for green maritime fuels to promote innovation and collaboration among industry stakeholders. Meanwhile, V.O. Chidambaranar Port has become the first Indian port to successfully produce green hydrogen and achieve over 1 MW of rooftop power generation.
Furthermore, the Indian Register of Shipping has signed an MoU with SeaTech Solutions International (S) Private Limited to collaborate internationally on green tug design and sustainable initiatives. The Green Tug Transition Program and the Harit Nauka (green transition guidelines for inland vessels) will be among the core components of this MoU.
Tracking the potential of emerging segments and the path ahead
India’s nascent shipbuilding and ship repair industry is poised for significant growth, attracting interest from Japan and South Korea. Recently, Cochin Shipyard Limited signed an agreement with South Korea’s HD Korea Shipbuilding & Offshore Engineering to jointly explore vessel-building opportunities and facilitate the transfer of advanced shipbuilding technology. Besides this, Hindustan Shipyard Limited is preparing to establish its first satellite shipyard near emerging ports in Andhra Pradesh. This shipyard will feature facilities such as a floating dry dock for both construction and repair.
Furthermore, cruise tourism is becoming an important segment. To tap into its vast potential, the government launched the Cruise Bharat Mission in September 2024. This initiative is expected to revolutionise inland waterway tourism by 2027, with the introduction of 51 new river cruise circuits across 14 states and three union territories. A significant step towards making India a premier global cruise destination was marked by the inauguration of the Mumbai International Cruise Terminal, which took eight years to build and entailed an investment of Rs 5.56 billion. Going forward, the country plans to upgrade 5,000 km of navigable waterways to improve cruise connectivity with ASEAN.
Indian ports will also play a pivotal role in strengthening regional and global trade ties. The Sagarmala programme will continue to strengthen road and rail linkages to ports, helping reduce costs and improve hinterland integration.
The future of the maritime industry will depend on a balanced approach that integrates economic targets with environmental sustainability. However, in the short term, the sector may face risks from global trade volatility. With a holistic policy framework, stronger global collaborations and a focus on innovation, India will emerge as a leading player in the global maritime industry.
Sidra Siddiquie
