Indian port industry to grow by 4-7 per cent in next five years

Delhi Delhi: The Indian port industry will grow at 4-7 per cent over the next five years, supported by increased imports, reduced freight costs and normalisation of global supply chains, according to a report by Motilal Oswal. According to the report, cargo traffic is expected to grow at a steady annual rate of 3-6 per cent, while utilisation rates will remain stable at around 55 per cent over the medium term.

Transshipment, which currently accounts for around 25 per cent of India’s container throughput, continues to be a critical segment, with major ports such as Chennai playing a key role in facilitating this segment. Between financial year (FY) 2023 and FY28, India’s ports’ capacity is expected to increase by 500-550 MTPA annually, driven by continued growth in petroleum, oil and lubricants (POL) handling as well as coal and containerised cargo, according to the report.

The report said that the growth of ports will be driven by the increase in the handling of petroleum, oil, lubricants (POL), coal and containerised cargo. India’s ports currently handle 95 per cent of the country’s export volumes and 70 per cent of its export values, reflecting the sector’s key role in facilitating trade.

With a coastline of nearly 7,500 km and 20,275 km of national waterways across 24 states, India’s ports benefit from a strategic location in the Indian Ocean. This position aligns with 80 per cent of the global seaborne oil trade, enhancing the country’s potential to become a major player in the maritime sector.

Also Read – Apple iPhone 17 to replace ‘Pro Max’ with ‘Ultra’

Indian ports infrastructure comprises 13 major ports and 205 non-major ports. In FY24, major ports handled 819 MMT of cargo, and in the April 2024 to January 2025 period, the number was 699 MMT. Overall, the sector operates with a capacity of 2,604 MTPA, but this is expected to expand significantly in the coming years, the report said.