India's Port Industry: A Strategic Growth Trajectory

India's port industry is set to grow by 4-7% annually, fueled by rising imports and normalized global supply chains. The sector's expansion is driven by increased handling of petroleum, coal, and containerized cargo. Major and non-major ports play pivotal roles, enhancing India's status in global maritime trade.

India's port industry is predicted to expand by 4-7% annually over the next five years, according to a report from Motilal Oswal. The growth is attributed to rising imports, a drop in freight costs, and the normalization of global supply chains.

Key ports like Chennai are central to the burgeoning transshipment sector, which makes up 25% of India's container throughput. The report forecasts an annual capacity increase of 500-550 MTPA at ports from FY23 to FY28, driven by gains in petroleum, oil, and lubricants handling alongside coal and containerized cargo.

The report underscores ports' pivotal role in India's trade, managing 95% of export volumes. With a strategic location in the Indian Ocean, India could emerge as a leader in global maritime trade. Major and non-major ports are crucial, with the latter seeing a 7.6% rise in cargo traffic in FY23, surpassing major ports' 4.7% growth.

(With inputs from agencies.)