Despite geopolitical tensions, India's port sector expected to grow faster than major economies: Report

Despite global geopolitical tensions and economic uncertainties, India's port sector is expected to grow at a significantly faster rate than many major global economies, according to a recent report by PL Capital. This growth is being fueled by robust domestic consumption, rising trade volumes, and sustained government investment in infrastructure.

The report emphasizes that the port sector's performance is closely linked to India's broader economic trajectory. With the government aiming to position India as a global manufacturing hub and boost exports, the logistics and port infrastructure sectors are poised for substantial expansion.

Between FY2002 and FY2025, cargo volumes at Indian ports registered a compound annual growth rate (CAGR) of 6.2%. Notably, non-major ports led this growth with a CAGR of 9.1%, outpacing the 4.7% growth rate recorded at major ports. The strong demand for port infrastructure is being driven by increasing trade activity and the government's infrastructure development push.

India currently operates 12 major seaports under central government control and over 200 non-major ports managed by state governments. Together, these ports have a combined handling capacity of about 2,700 million metric tonnes (MMT). The country has set an ambitious target to expand this capacity to 10,000 MMT by 2047.

The report also notes that India’s port sector is undergoing a major structural transformation. Improvements in port capacity, technological advancements to reduce turnaround time, better cargo handling standards, and enhanced connectivity are making Indian ports more efficient and future-ready.

As India moves toward its target of becoming a USD 10 trillion economy by FY2030, the ports and logistics sector is expected to play a pivotal role in supporting and accelerating the country’s economic journey.