PORT AND SHIPPING IN INDIA

Economics

India, by virtue of being a peninsular country with a coastline of about 7,500 km, has a natural advantage for developing ports and maritime trade. Nearly 95% of India’s trade by volume and about 70% by value is carried through sea routes, making ports and shipping a backbone of India’s external trade and logistics system.

India has 13 major ports and around 205 non-major ports along its coastline, supported by 8 public and 20 major private shipyards. Maritime transport plays a crucial role in the movement of bulk commodities such as crude oil, coal, iron ore, fertilizers, and manufactured goods.

SIGNIFICANCE OF PORT AND SHIPPING INFRASTRUCTURE

Economic Significance
Ports facilitate integration with the global economy by enabling large-scale trade at low cost. Efficient ports reduce logistics costs, enhance export competitiveness, and attract foreign investment. Port-related services such as cargo handling, customs clearance, pilotage, towing, warehousing, and ship repair generate large-scale employment.

Developmental Significance
Port-led development strengthens hinterland connectivity through road, rail, and inland waterways. Ports promote the blue economy through fisheries, tourism, and coastal employment. Industrial clusters develop around ports due to easy access to raw materials and export facilities.

Environmental Significance
Maritime transport is the most energy-efficient mode of transportation. Compared to sea transport, rail consumes twice and road consumes nearly ten times more energy for the same cargo movement.

Trade and Logistics
Ports are critical nodes in the logistics chain. Efficient ports reduce turnaround time, improve ease of doing business, and facilitate smoother domestic and international trade.

MAJOR SEA PORTS OF INDIA

India’s ports are located across nine coastal states. Major ports include Mumbai, JNPT, Kandla, Kochi, Mangalore, Mormugao on the west coast; Chennai, Visakhapatnam, Paradip, Kolkata, Tuticorin, Ennore on the east coast; and Port Blair in Andaman and Nicobar Islands.

Mumbai Port – Largest natural harbour in India.
JNPT – Largest container port and first 100% landlord port.
Kandla (Deendayal Port) – Largest port by cargo volume.
Kochi Port – India’s first transshipment terminal.
Chennai Port – Largest port in Bay of Bengal.
Visakhapatnam – Deepest port in India.
Paradip – First major port commissioned after independence.
Kolkata – Only riverine major port in India.

CHALLENGES IN PORT AND SHIPPING SECTOR

Economic Challenges
Low investment, limited access to finance, underdeveloped shipbuilding and repair industry, labour issues, and unhealthy competition among nearby ports.

Administrative Challenges
Delay in approvals, complex regulations, lengthy inspections, and discriminatory taxation against Indian vessels.

Infrastructure Challenges
Inadequate berthing capacity, outdated cargo-handling equipment, poor dredging facilities, and weak hinterland connectivity.

Logistical Challenges
Port congestion, high turnaround time, inability to handle large container vessels, and weak multimodal integration.

Environmental and Social Challenges
Oil spills, dredging-related ecological damage, displacement of coastal communities, and loss of livelihood for fishermen.

GOVERNMENT INITIATIVES

Legislative Measures

Policy Initiatives

Funding and Institutional Support

Technology and Digital Initiatives

WAY FORWARD

India needs to modernize ports, reduce turnaround time, improve hinterland connectivity, promote shipbuilding and coastal shipping, strengthen environmental safeguards, and develop ports as engines of regional development. Port-led development and logistics efficiency will be critical to India’s aspiration of becoming a $5 trillion economy.

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Subject: Economics

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