Market Reports

Maritime Sector in India

1	Quick facts: India’s Maritime Sector
2	India’s Maritime Sector Overview
3	Overview: Major Port-wise Cargo handled (in FY 24)
4	Government Schemes in the Maritime Sector
5	Megatrends in the Indian Maritime Sector
6	Why Invest in India’s Maritime Sector?

Quick Facts: India's Maritime Sector

India is the 6th largest producer of chemicals in the world and the 3rd largest in Asia, contributing 7% to the country’s GDP
The chemical and petrochemical industry in India employs over 2 million people and produces more than 80,000 different chemicals and petrochemicals
About 70% of India’s chemical production is used within the country
India contributes to 2.5% of global chemical sales
On the global stage, India holds a strong position in the trade of chemicals, ranking 14th in exports and 8th in imports (excluding pharmaceuticals)
India has a significant global presence, exporting chemicals to more than 90 countries, especially in the areas of dyes, pharmaceuticals, and agrochemicals
In India’s chemical sector, industrial licensing is allowed, and 100% foreign direct investment (FDI) is permitted under the automatic route, with exceptions for certain hazardous chemicals
In FY24, the chemical sector received INR 73.9 billion in foreign direct investment (FDI)
India ranks as the 4th largest producer of agrochemicals worldwide, following the United States, Japan, and China
By 2025, the specialty chemicals market in India is projected to reach INR 5,604 billion
India is a major global supplier of dyes, producing around 16% of the world’s dyestuffs and dye intermediates
By 2025, India’s chemicals and petrochemicals sector is estimated to attract an investment of INR 9,402 billion
Under the Interim Union Budget 2024-25, the government allocated INR 2,025 billion to the Department of Chemicals and Petrochemicals

Overview: India's Maritime Sector

India’s maritime sector is a cornerstone of its economic and trade infrastructure, significantly connecting the nation to global markets. With a coastline extending over 7,500 kilometers, India has one of the longest coastlines in the world, making it strategically vital for International shipping and trade. The country’s ports are crucial for handling growing cargo traffic, with over 700-800 million tons of cargo handled annually. India is also home to the world’s largest container port operator, DP World, and ranks among the top 20 largest containerized cargo-handling nations.
The sector is vital for India’s economic progress, as around 70% of India’s goods are transported via sea. India’s ports handle a diverse range of goods, from bulk commodities like coal and iron ore to high-value exports such as textiles, chemicals, and automobiles. India is the fourth-largest importer of crude oil globally, and its major ports, including Jawaharlal Nehru Port and Chennai Port, are key points for importing energy resources.
The Indian government has been actively working to modernize and expand its maritime infrastructure through initiatives like the Bharatmala Pariyojana and the National Perspective Plan for Port-led Development. These programs aim to boost cargo handling capacity and improve port connectivity across the country. India is also rapidly expanding its shipbuilding industry and enhancing its maritime fleet to reduce dependency on foreign ships for trade. By focusing on infrastructural upgrades and efficient logistics, India is positioning itself as a global maritime hub with ambitious growth targets for the next decade.

Overview: Major Port-wise Cargo handled (in FY 24)

India has 12 major ports, and together they handled 819 million tons of cargo in FY24
The country’s major ports are vital in managing diverse cargo types, including bulk, containerized, and specialized goods, supporting various industries across the nation
Paradip Port, Deendayal Port, and Jawaharlal Nehru Port are among the top performers in handling significant volumes of cargo, demonstrating their dominance in the country’s maritime sector. Together these 3 ports handled around 50% of cargo.
Ports like Visakhapatnam Port, Mumbai Port, and Chennai Port play a crucial role in boosting India’s trade by handling large quantities of containerized cargo and bulk commodities.
The performance of key ports, as shown by their handling capacity, highlights the ongoing growth and modernization of India’s maritime sector, ensuring smoother logistics and global trade competitiveness.
The combined cargo traffic handled by India’s major ports highlights the critical role of maritime trade in facilitating both exports and imports for the country.
Continuous capacity expansion and infrastructure improvement at major ports are set to increase their efficiency, allowing them to accommodate future growth in cargo traffic and enhance India’s position in the global maritime trade network.

Government Schemes in the Maritime Sector

The Indian maritime sector plays a pivotal role in supporting the country’s trade and economic growth. To modernize infrastructure, enhance port connectivity, and foster sustainability, the government has introduced several key schemes aimed at strengthening India’s position as a global maritime hub and enhancing efficiency across various segments of the sector. Below are some of the major government initiatives:

Sagarmala Program

The Sagarmala Program is a flagship initiative by the Ministry of Ports, Shipping, and Waterways, aimed at port-led development across India.
The scheme leverages India’s 7,500 km coastline and 14,500 km of navigable waterways to develop port infrastructure, enhance coastal development, and improve connectivity.
It supports a wide range of projects, including coastal berths, road and rail connectivity, fish harbours, skill development programs, cruise terminals, and Ro-Pax ferry services.
Financial assistance is provided to State/UT Governments for the execution of these projects.
As of July 26, 2024, a total of 130 projects with a financial allocation of INR 37 billion have been sanctioned under the scheme.

Maritime India Vision (MIV) 2030

The Maritime India Vision (MIV) 2030 is a comprehensive strategy to position India as a global leader in maritime trade and activities.
Launched by the Ministry of Ports, Shipping, and Waterways, MIV 2030 aims to accelerate the growth of the maritime sector over the next decade.
The vision includes over 150 initiatives across ten key themes, covering various areas such as ports, shipyards, inland waterways, and trade bodies.

Inland Waterways Development

The Inland Waterways Authority of India (IWAI) has identified 26 new national waterways, making them navigable for enhanced regional connectivity.
These routes are designed to reduce congestion on road and rail networks while providing a more sustainable, cost-effective alternative for transporting goods and passengers.
The development of inland waterways promotes eco-friendly, low-cost transportation and is expected to contribute significantly to reducing carbon emissions and fostering regional trade.

Green Tug Transition Program (GTTP)

The Green Tug Transition Program (GTTP) aims to phase out traditional, fuel-powered harbour tugs at major Indian ports.
These conventional tugs will be replaced with environmentally friendly tugs, powered by sustainable fuels, contributing to the reduction of the maritime sector’s carbon footprint.
The program’s goal is to ensure a completely eco-friendly fleet of tugs across India’s major ports by 2040, supporting the country’s broader environmental sustainability goals.

Shipbuilding & Ship Repair Industry Promotion

The government has introduced schemes aimed at promoting domestic shipbuilding and ship repair industries.
These initiatives offer financial incentives, technical support, and policy reforms to attract investments in shipbuilding, making India a more prominent player in the global maritime manufacturing sector.
The program also supports the modernization and expansion of existing shipyards to cater to the growing demand for maritime vessels and services.

Megatrends in the Indian Maritime Sector

Digital Transformation and Automation

Indian ports are increasingly adopting automated systems for cargo handling, container terminals, and logistics management. This boosts efficiency, reduces human errors, and accelerates throughput.
Platforms like the Port Community System (PCS) and National Logistics Portal (Maritime) are streamlining operations, enhancing data exchange, and reducing bureaucratic delays.
The adoption of smart ships, powered by IoT and AI, is revolutionizing navigation, maintenance, and operational efficiency.

Sustainability and Green Shipping

The focus on reducing carbon emissions is pushing the adoption of cleaner fuels such as LNG, biofuels, and hydrogen, alongside innovations like wind-assisted propulsion and solar-powered ships.
Indian ports are adopting green technologies like solar energy, waste management systems, and energy-efficient cargo-handling equipment to reduce their environmental impact.
With the IMO’s 2020 Sulphur Cap and other upcoming regulations, Indian maritime operators are adopting cleaner technologies to comply with global standards and reduce their carbon footprint.

Port Infrastructure Modernization and Capacity Expansion

India is upgrading and expanding major ports, such as Jawaharlal Nehru Port and Mumbai Port, to accommodate larger vessels and handle increasing cargo volumes.
There is a significant increase in private sector participation in port operations, leading to more modernized facilities, increased throughput, and better service quality.
Enhanced road, rail, and inland waterway connectivity is being integrated with port infrastructure, making it easier to move goods and improve overall logistics efficiency.

Growth of Inland Waterways

The government is focusing on the development of national waterways, with projects aimed at converting river systems into reliable transport routes, easing congestion on roads and railways.
Development of inland water transport (IWT) corridors such as the Ganga-Bhagirathi-Hooghly river system and others is expected to enhance regional trade.
Expansion of cargo handling and terminal infrastructure along inland waterways is boosting capacity and providing efficient transportation for bulk goods.

Why Invest in India's Maritime Sector?

Strategic Geographic Location

India’s wide coastline span is strategically located along major international maritime routes linking Asia, Europe, and Africa.
India sits at the crossroads of crucial global shipping lanes, including the Strait of Malacca and the Arabian Sea, which are vital for global trade.
India has 13 major ports and over 200 non-major ports, facilitating a substantial share of international trade.
India’s position gives it access to one of the most dynamic and rapidly growing regions in global trade.
Around 95% of India’s trade by volume is carried out through maritime transport, underlining its importance for economic growth.

Robust Infrastructure Development

The government has invested heavily in port infrastructure, with initiatives such as the National Perspective Plan (NPP) and the Sagarmala Project, which aim to modernize and expand India’s port capacity.
The government aims to increase major ports handled capacity to 1,500 million tons by 2035.
Over 50% of Indian ports are operated by private players, providing a favourable environment for private investments in maritime infrastructure.
The establishment of special maritime zones and the focus on developing port-based industrial hubs further create growth opportunities.

Government Support and Policy Initiatives

The Sagarmala Program, launched in 2015, focuses on port modernization, enhancing connectivity, and boosting logistics efficiency. This aims to cut logistics costs to 8% of GDP by 2030, down from the current 13-14%.
The government’s Transport and Logistics Division offers subsidies for Indian shipping companies, enhancing the competitiveness of Indian maritime services.
With the government’s push for self-reliance in defence and manufacturing, maritime sectors such as shipbuilding and offshore exploration receive significant attention.
The government has implemented policies to simplify port operations, including the introduction of the National Maritime Development Programme, aiming to reduce regulatory bottlenecks.
The introduction of Special Economic Zones (SEZs) linked to ports will drive investments in maritime-related industries, particularly in manufacturing and logistics.

Market Reports

Maritime Sector in India

Quick Facts: India's Maritime Sector

Overview: India's Maritime Sector

Overview: Major Port-wise Cargo handled (in FY 24)

Government Schemes in the Maritime Sector

Megatrends in the Indian Maritime Sector

Why Invest in India's Maritime Sector?

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