India’s port sector is poised for significant expansion, with annual capacity expected to increase by 500-550 million tonnes per annum (MTPA) between the financial years 2023 and 2028, according to a report by Motilal Oswal Financial Services. The surge in capacity is being driven by heightened cargo handling of petroleum, oil, lubricants (POL), coal, and containerized goods, reinforcing the sector’s vital role in facilitating trade.
Ports currently handle 95% of India’s total export volume and contribute 70% of export value. India’s strategic position in the Indian Ocean, combined with its extensive 7,500-kilometer coastline and 20,275 kilometers of national waterways spanning 24 states, positions the country as a rising force in global maritime trade.
India’s Strategic Position Strengthens Maritime Potential
With nearly 80% of global maritime oil trade passing through the Indian Ocean, India’s ports stand to benefit significantly from increasing global energy demands. The country’s port network consists of 13 major ports and 205 non-major ports, forming a robust maritime infrastructure. In the financial year 2024, major ports handled 819 million metric tonnes (MMT) of cargo, while from April 2024 to January 2025, the figure reached 699 MMT, highlighting strong growth in trade volumes.
Steady Cargo Growth Expected Over the Next Five Years
The report forecasts cargo traffic growth at an annual rate of 3-6%, with port utilization expected to stabilize around 55% in the medium term. Container traffic is projected to rise by 4-7% annually over the next five years, fueled by increasing imports, declining freight costs, and the normalization of global supply chains.
Transshipment—a crucial component of India’s port operations—accounts for nearly 25% of the country’s container throughput. Ports such as Chennai are anticipated to play a pivotal role in supporting this segment.
Major vs. Non-Major Ports: Growing Role of Private Players
The report underscores the distinct roles of major and non-major ports in India’s port ecosystem. Major ports, governed by the central government, are typically located near industrial hubs and handle a wide range of cargo based on regional needs. However, these ports often face congestion due to shared access channels. In contrast, non-major ports, managed by state governments or private entities through public-private partnerships (PPP), have shown higher efficiency and operational flexibility, reducing congestion.
In the financial year 2023, non-major ports recorded a 7.6% increase in cargo traffic, outpacing the 4.7% growth seen at major ports. This trend highlights the rising significance of private and state-run ports in bolstering India’s maritime trade.
As India continues to expand its port infrastructure, the sector is set to play a crucial role in driving economic growth, strengthening trade links, and enhancing the country’s position in global shipping networks.
