Advantage India
Robust
Demand
*Ports sector in India is being driven by high growth in external trade.
*On June 19, 2024, the Indian government approved plans to invest over Rs. 78,264 crore (US$ 9 billion) in the construction of Vadhavan Port, located north of Mumbai, which aims to become one of the world's top 10 ports, enhancing trade capacity between India, the Middle East, and Europe.
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.
*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.
Policy
Support
*On July 26, 2024, the Government of India announced an update to the Shipbuilding Financial Assistance Policy (SBFAP), which has provided financial aid totaling 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.
*The Union Budget 2025-26, extends the Shipbuilding Financial Assistance Policy (SBFAP) 2.0 with a Rs. 18,090 crore (US$ 2.08 billion) outlay, offering subsidies to Indian shipyards to offset costs and boost domestic shipbuilding.
Competitive
Advantage
*India has a coastline which is more than 7,516.6 km long, interspersed with more than 200 ports.
*In the Union Budget for 2025-26, Union Minister of Finance and Corporate Affairs, Ms. Nirmala Sitharaman, introduced a Maritime Development Fund (MDF) of Rs. 25,000 crore (US$ 2.87 billion) to promote infrastructure and competitiveness within the maritime industry.
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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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