India's ports sector set for major growth with 500- 550 Million Tonnes Per Annum (MTPA) capacity expansion annually by FY28
- IBEF
- February 24, 2025
India’s ports sector is set for major expansion between FY23 and FY28, with an estimated annual capacity addition of 500-550 Million Tonnes Per Annum (MTPA). This growth is primarily driven by increased handling of Petroleum, Oil, and Lubricants (POL), coal, and containerized cargo. With its strategic 7,500 kilometers (KM) coastline and 20,275 km of national waterways, India plays a key role in global maritime trade. The country currently operates 13 major and 205 non-major ports, handling 95% of its export volume and 70% of its export value. In FY24, major ports processed 819 Million Metric Tonnes (MMT) of cargo, with 699 MMT recorded between April 2024 and January 2025.
The sector is projected to grow steadily at 3-6% annually, with container traffic increasing by 4-7%, supported by rising imports, lower freight costs, and a stabilized global supply chain. Transshipment, accounting for 25% of India’s container throughput, is crucial, with key ports like Chennai playing a pivotal role. While major ports, managed by the central government, face congestion issues, non-major ports, run by state governments or private partnerships, offer higher efficiency and operational flexibility. In FY23, non-major ports recorded a 7.6% cargo growth, surpassing the 4.7% growth at major ports. With infrastructure improvements and rising cargo volumes, India’s ports are set to be a major driver of economic growth.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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