Container Traffic to Drive Growth at Indian Ports Through FY28: Motilal Oswal
- IBEF
- July 20, 2026
India’s ports sector is expected to witness sustained growth over the next three years, with container traffic emerging as the primary growth driver amid rising domestic consumption, favourable macroeconomic conditions and increasing containerisation of cargo. According to a report by Motilal Oswal, container volumes at Indian ports are projected to grow at a compound annual growth rate of 7-9% during FY26 to FY28, significantly outperforming other cargo segments. The report indicates that the growth will be supported by robust manufacturing activity, expanding merchandise trade, improving logistics infrastructure and continued investments in port modernisation. With the Government's continued focus on enhancing multimodal connectivity, port capacity expansion and reducing logistics costs, India's maritime sector is expected to play an increasingly important role in supporting trade-led economic growth and strengthening the country's position as a global logistics hub.
The report also highlights varying growth trends across major cargo categories. Coal traffic is expected to decline at a compound annual growth rate of 2-4% during FY26 to FY28, driven by higher domestic coal production, increased renewable energy adoption and import substitution, although coastal coal movement is expected to remain resilient. Petroleum, Oil and Lubricants traffic is projected to expand at a moderate 2-4% compound annual growth rate, supported by stable fuel demand but moderated by improved fuel efficiency and greater adoption of alternative energy sources. Meanwhile, iron ore traffic is expected to recover at a 5-7% compound annual growth rate, driven by higher coastal transportation to domestic steel plants and increased imports amid elevated domestic ore prices. The optimistic outlook follows a strong performance in FY2025-26, when cargo volumes handled at India's major ports increased by approximately 7% year-on-year to 915 million metric tonnes, supported by 6.6% growth in overseas cargo and 8% growth in coastal traffic. The report notes that continued policy support, infrastructure development and rising trade volumes are expected to reinforce India's emergence as a leading maritime and logistics hub.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Partners
