Advantage India
Robust
Demand
*Ports sector in India is being driven by high growth in external trade.
*In FY23, major ports in India handled 783.50 million tonnes of cargo traffic, implying a CAGR of 3.26% in FY16-23.
*In FY24 (April-January) cargo traffic handled by major stood at 677.22 million tonnes.
*India’s 12 major ports handled 819.227 million tonnes of cargo in FY24, a 4.45% increase from 784.305 million tonnes in FY23, driven by strong growth in iron ore, raw fertilizer, coking coal, and container shipments, with Jawaharlal Nehru Port Authority handling over half of the total container volumes.
Attractive
Opportunities
*India plans to establish a new shipping company to expand its fleet by at least 1,000 ships in the next decade, aiming to reduce freight costs and capture more revenue from increasing trade, with joint ownership by state-run oil, gas, and fertilizer companies, along with the state-run Shipping Corporation of India and foreign companies, targeting a reduction of at least one-third in foreign freight outgoings by 2047.
Policy
Support
*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.
*In the Interim Union Budget 2024-25, the total allocation for the Ministry of Shipping was US$ 281.23 million (Rs. 2,345.45 crore).
Competitive
Advantage
*India has a coastline which is more than 7,516.6 km long, interspersed with more than 200 ports.
*Most cargo ships that sail between East Asia and America, Europe and Africa pass through Indian territorial waters.
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MOREMajor Ports in India
- Kolkata
- Paradip
- Visakhapatnam
- Kamarajar (Ennore)
- Chennai
- V.O Chidambaranar
- Cochin
- New Mangalore
- Mormugao
- Deendayal
- Mumbai
- J.N.P.T
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