Shipping Industry & Ports in India

Government Initiatives

Some of the major initiatives taken by the government to promote the ports sector in India are as follows:

• The Rajya Sabha passed the Indian Ports Bill, 2025 on August 18, 2025, replacing the 1908 colonial law to modernise port operations, enhance transparency, ensure environmental and safety standards, and align with global practices.
• There are 234 port modernization projects worths Rs. 2,91,622 crore (US$ 34.12 billion). Of which, 98 projects worth Rs. 32,066 crore (US$ 3.75 billion) have been completed and 62 projects worth Rs. 75,650 crore (US$ 8.85 billion) are being implemented as of August 2025.
• As of August 2025, the Sagarmala Programme has identified 279 port-connectivity projects worth Rs. 2,06,363 crore (US$ 24.14 billion). Of these, 149 projects worth Rs. 1,22,971 crore (US$ 14.39 billion) comprise of 82 completed projects valued at Rs. 41,780 crore (US$ 4.89 billion) and 67 projects under implementation worth Rs. 81,191 crore (US$ 9.5 billion). 114 rail projects worth Rs. 1,00,599 crore (US$ 11.77 billion) have been taken up, with 49 completed. 152 road projects worth Rs. 98,422 crore (US$ 11.52 billion) have been identified, with 26 completed. 10 Multi-Modal Logistics Parks (MMLP) worth Rs. 2,237 crore (US$ 261 million) are being developed, with four operational and others in advanced stages of implementation.
• The government introduced One Nation One Port Process (ONOP) initiative in February 2025 which aims to unify documentation and processes across all major ports, reducing paperwork by 25% for container and bulk cargo operations and driving substantial savings in logistics costs.
• The Union Budget 2025-26 introduced a Maritime Development Fund (MDF) of Rs. 25,000 crore (US$ 2.9 billion) to support ship acquisition and infrastructure, aiming to raise the share of Indian-flagged ships in global cargo to 20% by 2047.
• The Government of India is advancing Sagarmala 2.0 with Rs. 40,000 crore (US$ 4.65 billion) in support to drive Rs. 12,00,000 crore (US$ 139.49 billion) in investments from 2025 to 2035, enhancing shipbuilding, port modernisation, coastal growth, and maritime competitiveness.
• India and the Netherlands will establish a green and digital corridor between Indian ports and the Port of Rotterdam to boost clean energy trade. This initiative focuses on exporting green hydrogen and its derivatives to Europe while enhancing port digitalisation, green shipping, and logistics, aligning with India’s Maritime Vision 2030 to modernise port infrastructure.
• To encourage a modal shift to Inland Water Transport (IWT), the Government introduced the “Jalvahak” Cargo Promotion Scheme on December 15, 2024, offering 35% reimbursement on operational costs and launching scheduled cargo services on key NW routes. The Union Budget 2025-26 also extended the tonnage tax regime to inland vessels under the Indian Vessels Act 2021.
• The Union Cabinet has approved the construction of a six-lane access-controlled greenfield high-speed National Highway, connecting Jawaharlal Nehru Port Authority (JNPA) Port (Pagote) to Chowk (29.219 kilometer) in Maharashtra at an investment of Rs. 4,500 crore (US$ 521.50 million).
• India’s 12 major ports handled 72.2 million tonnes of cargo in December, growing 3.22%. In FY25 so far, total cargo reached 620 million tonnes, reflecting a 2.7% YoY increase.
• In October 2024, Union Cabinet approved the development of the National Maritime Heritage Complex (NMHC) at Lothal, Gujarat, showcasing India’s 4,500-year-old maritime heritage. This project is expected to enhance employment, tourism, and cultural preservation with phased development supported by public-private partnerships with a completion goal of 2025 for its first phase.
• In July 2024, the Union Minister for Ports, Shipping, and Waterways Mr. Sarbananda Sonowal approved a Rs. 284.19 crore (US$ 34 million) project by the Jawaharlal Nehru Port Authority (JNPA) to establish a comprehensive agricultural commodity processing and storage facility aiming to streamline logistics, reduce handling stages, and extend the shelf life of agricultural products. The projected export capacity includes a frozen store of 1,800 metric tonnes, a cold store of 5,800 metric tonnes, and dry warehouses for 12,000 metric tonnes of grains, cereals, and dry cargo.
• On 19 June 2024, the Government of India approved the establishment of a Major Port at Vadhavan, Maharashtra, with an estimated cost of Rs. 76,220 crore (US$ 9.14 billion), aiming to enhance EXIM trade capacity and accommodate mega vessels, while facilitating public-private partnerships for infrastructure development.
• On 29 July 2024, Secretary Mr. T.K. Ramachandran reviewed the functioning of the Paradip Port Authority (PPA) and inaugurated key projects worth over Rs. 13 crores (US$ 1.56 million), including a Trauma and Burn Care Centre and a Water Treatment Plant with a capacity to filter 16 million litres of water per day, enhancing the port's infrastructure and services.
• On July 26, 2024, the Government of India announced an update to the Shipbuilding Financial Assistance Policy (SBFAP), which has provided financial aid totalling Rs. 337 crores (US$ 40.40 million) to enhance India’s competitiveness against foreign shipyards and revitalize the shipbuilding industry. Since the policy's inception, 313 vessel orders valued at approximately Rs. 10,500 crores (US$ 1.26 billion) have been secured.
• On July 26, 2024, the Government of India announced 29 new proposals from Andhra Pradesh and Visakhapatnam Port Trust under the Sagarmala project, totalling approximately Rs. 3,300 crores (US$ 395 million). These initiatives include port development and fish landing centers.
• The Union Budget 2025-26 extends the Shipbuilding Financial Assistance Policy (SBFAP) 2.0 with Rs. 18,090 crore (US$ 2.08 billion) outlay, offering subsidies to Indian shipyards to offset costs and boost domestic shipbuilding.
• Under the Sagarmala Programme, 45 projects totalling Rs. 47,166 crore (US$ 5.69 billion) have been earmarked for execution at Non-Major Ports. Of these, 4 projects worth Rs. 5,419 crore (US$ 0.65 billion) have been finalized, while 17 projects valued at Rs. 27,673 crore (US$ 3.34 billion) are presently underway. 31 out of the 45 projects are being carried out through Public-Private Partnership (PPP) mode, with a collective investment of Rs. 45,973 crore (US$ 5.54 billion).
• On March 07, 2024, the Union Minister for Ports, Shipping, and Waterways, Mr. Sarbananda Sonowal approved a project exceeding Rs. 800 crore (US$ 96.48 million) to revamp Syama Prasad Mookerjee Port, Kolkata, encompassing berth reconstruction and mechanization to enhance operational efficiency and global competitiveness.
• On February 20, 2024, The Union Minister of Ports, Shipping & Waterways and Ayush, Mr. Sarbananda Sonowal initiated major waterways projects in Northeast India, including inaugurating terminals at Bogibeel and Sonamura, unveiling projects worth Rs. 308 crore (US$ 37.14 million) and announcing initiatives for improved connectivity and economic growth.
• The Ministry of Ports, Shipping and Waterways will invest over Rs. 57,000 crore (US$ 6.55 billion) to boost Kandla Port’s capacity, including a Rs. 30,000 crore (US$ 3.45 billion) mega shipbuilding project and Rs. 27,000 crore (US$ 3.10 billion) cargo terminal.
• On September 19, 2023, the Ministry of Ports, Shipping, and Waterways proposed the Indian Ports Bill with the aim of enhancing transparency in port tariffs and updating penalties. The bill empowers the Maritime States Development Council (MSDC) for integrated planning and introduces a three-tier dispute resolution mechanism for conflicts between state maritime boards.
• On August 24, 2023, the Ministry of Ports, Shipping and Waterways initiated the development of a Next-Gen Container Terminal at Tuna Tekra, Gujarat, through a Rs. 4,243.64 crore (US$ 511.7 million) PPP agreement with DP World, enhancing port infrastructure and trade connectivity.
• On January 27, 2023, the Honorable Minister for Ports, Shipping, and Waterways inaugurated the National Logistics Portal (Marine). This platform connects logistics stakeholders, enhancing efficiency, transparency, and reducing costs and time delays through IT integration. Covering all transport modes, it offers seamless end-to-end logistics service coverage.
• The government aims to increase Inland Water Transport (IWT) share to 5% by 2030 as per Maritime India Vision (MIV)-2030, emphasizing its cost-effectiveness and sustainability for bulk cargo transportation, particularly along National Waterway No. 1 (River Ganga).
• In Union Budget 2023-24, the total allocation for the Ministry of Shipping was US$ 1,813.16 million (Rs. 2,218.74 crore).
• The “Green Port Guidelines” issued by the Ministry of Ports, Shipping and Waterways in May 2023 provides a roadmap for Indian major ports to reduce carbon intensity through green technologies, renewable energy, electrification, waste minimisation, environmental monitoring, and sustainability targets consistent with national de-carbonisation goals.