Indian Economy News

Based on IPA data, major ports recorded their first double-digit cargo growth in FY24

  • IBEF
  • November 14, 2023

Major ports owned by the central government saw a turnaround in October after exhibiting sluggish growth this fiscal year. The Indian Ports Association's (IPA) preliminary data revealed a 13% increase in cargo and that the ports handled 70 million tonnes (MT) of goods.

Major ports handled more than 70 MT and experienced double-digit percentage growth for the first time in FY24. Due to the Russia-Ukraine war, major ports saw sluggish growth in the previous fiscal year despite investments in infrastructure for modernisation and capacity development. This fiscal year, they performed tepidly as well, partly because of global headwinds. From April to September, the cargo increased at a pace of 2.4%. Due to the spike in the preceding month, major ports saw an almost 4% increase in cargo growth in FY24.

In October, handling of containers—roughly one-fourth of all cargo at state-owned ports—rose 19%, indicating higher movements of finished goods in the maritime economy. Major ports' container handling had increased by 7% as of September.

The preliminary statistics do not immediately indicate whether increased coastal movements of domestic commodities or international trade drove the growth.

This paper had previously reported that major ports experienced nearly no growth in coastal cargo in FY24, whereas privately-owned ports saw a 21% increase in traffic during the same period. The central government has prioritised coastal cargo in its Union Budget for this fiscal year. October saw a 10% increase in the volumes of thermal, coking, and other industrial coal, as well as a more than twofold increase in the traffic in iron ore.

Inland waterways carried 76.81 MT of cargo and raw materials between April and October, up 9.92% from 69.88 MT in the same period the previous year, according to the Ministry of Ports, Shipping, and Waterways.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.