India’s port sector projected to outpace global peers: Report

Despite ongoing global geopolitical tensions and economic uncertainty, India’s port sector is poised to grow at a faster pace than many major global economies, according to a new report by PL Capital.

The growth is being fueled by rising domestic consumption, increasing trade volumes, and strong government-backed infrastructure initiatives. “We believe, despite ongoing geopolitical tensions and global uncertainty, India’s ports sector is expected to grow faster than other major economies, driven by an increase in consumption and government-led projects,” the report stated.

PL Capital emphasized that ports and economic growth in India are deeply interconnected. With the government pushing to establish India as a global manufacturing hub and boost exports, the ports and logistics sectors are positioned to see sustained expansion.

According to the report, cargo volumes at Indian ports grew at a compound annual growth rate (CAGR) of 6.2% between FY2002 and FY2025. This growth was notably driven by non-major ports, which registered a higher CAGR of 9.1%, compared to 4.7% growth at major ports.

Currently, India has 12 major seaports and over 200 non-major ports, with a combined capacity of approximately 2,700 million metric tonnes (MMT). While major ports fall under central government jurisdiction, non-major ports are managed by state governments. The country has set a long-term goal to expand total port capacity to 10,000 MMT by 2047.
It also notes that India’s ports are undergoing a structural transformation, with investments in capacity expansion, improved turnaround times, better operational standards, and enhanced connectivity.

As India advances toward its target of becoming a USD 10 trillion economy by FY2030, the ports sector is expected to play a pivotal role in supporting trade and economic development.