Snapshot

Sailing towards success

India is strategically located on the world’s shipping routes with a coastline of approximately 7,517 km. Maritime transport handles around 70% of India’s trading in value terms. As of 2021, India owns over 30% global market share in the ship breaking industry and is home to the largest ship-breaking facility in the world at Alang. To promote India's shipping and port industry, the government has also introduced various fiscal and non-fiscal incentives for enterprises that develop, maintain and operate ports, inland waterways and shipbuilding in India.

The Maritime India Vision 2030 has identified over 150 initiatives to boost the Indian maritime sector. The Vision 2030 was launched by Hon’ble Prime Minister of India in March 2021. It is drafted after significant consultation with over 350 public and private stakeholders comprising of ports, shipyards, inland waterways, trade bodies and associations, and legal experts. The vision serves as a blueprint to achieve an accelerated and coordinated development of India’s diverse maritime sector, comprehensively identifying over 150 initiatives covering all facets of the country’s maritime sector.

In 2017, the government launched the ambitious Sagarmala Program with the vision of port-led development and growth of logistics-intensive industries. Under the program, $123 bn would be invested across 415 projects across the following identified components:

  •  Port Modernization and New Port Development
  •  Port Connectivity Enhancement
  •  Port-Linked Industrialization
  •  Coastal Community Development

Both Sagarmala and Maritime India Vision focus on unlocking additional potential such as annual revenue of INR 20,000 Cr. (US$2.7 Bn) from extant assets and generating employment, targeting 2 million direct and indirect jobs by 2030

100% FDI allowed under both government and automatic route.

For further details, please refer FDI Policy

  • MT

    Cargo traffic at major ports in 2020-21 (for both major and minor ports)

  • %

    Cargo traffic growth reduction in Average Turnaround Time in last 10 yrs

  • Indian fleet strength (no. of vessels - coastal & overseas as on Apr 2020)

  • MTPA

    Port capacity (both major & minor ports)

Annual cargo traffic more than doubled to over 1.2 bn tonnes p.a. since 2005

Seaborne trade in India has grown at twice the global growth rate of 3.3%

16th largest maritime country in the world

Industry Scenario

Cargo traffic on the rise

India has 12 major and 200 non-major/intermediate ports (under state government administration). Jawaharlal Nehru Port Trust is the largest major port in India, while Mudra is the largest private port. Moreover, India is one of the world's top 5 ship recycling countries and holds 30% share in the global ship recycling market. Approximately 95% of the country’s trade by volume and 68% by value is moved through Maritime Transport.

The overall installed capacity of the major ports in India has increased over 76% to reach 1,561 MTPA in Mar 2021, vis-a-vis 872 MTPA in March 2014. Moreover, the total traffic handled by these major ports has reached to 672 MT during 2020-21. During the same time, non-major ports in India handled a total cargo throughput of around 580 MT, taking the total cargo handled by all Indian ports to over 1,250 MT.

By Financial Year 2020-21, 802 projects worth ~USD 70 Bn (Rs. 5.6 Lakh Cr.) are for implementation under the Sagarmala Program. Of these, 185 projects worth ~USD 12 Bn (Rs. 95,000 Cr.) are completed and 211 projects worth ~USD 26 Bn (Rs. 2.1 Lakh Cr.) are under implementation and 406 projects worth ~USD 30 Bn (Rs. 2.5 Lakh Cr.) are under various stages of development.

Under public-private partnerships (PPP), there are 58 projects worth ~USD 5 Bn (INR 40,000 Cr.) under various stages of implementation. Of these, 33 projects of ~ USD 3.4 Bn (Rs. 27,000 Cr.) are operational whereas 25 projects for over USD 1.6 Bn (Rs.13,000 Cr.) are under implementation. 19 such projects with total investment of ~USD 1.1 Bn (Rs. 8,862 Cr.) have been completed in 2021 alone.

Share in traffic for major commodities (2021)

  • POL: 30.7%
  • Container: 21.4%
  • Thermal coal: 18.8%
  • Iron ore: 9.6%
  • Others: 19.5%

GROWTH DRIVERS

  • National waterways

    Development of existing & 106 notified waterways

  • Sagarmala initiative

    6 new ports identified under Sagarmala Programme

  • Container Manufacturing

    Bhavnagar in Gujarat is being developed as a container manufacturing hub

  • Cruise shipping

    Cruise shipping potential expected to grow

  • Specialist terminal based ports

    Cargo like LNG with specific equipment & high capital costs

  • Rising trade

    Increased trade & private participation in port infra development

  • Atmanirbhar Bharat Abhiyaan - Self Reliant India

    Special economic and comprehensive package of INR 20 lakh crores towards promoting manufacturing in India

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FAQs

Frequently
Asked Questions

What is the role of the Directorate General of Shipping?

The Directorate General of Shipping deals with implementation of shipping policy and legislation. Its objectives are as follows:
1) Matters affecting merchant shipping & navigation.
2) Measures to ensure safety of life and ships at sea.
3) Development of Indian shipping.
4) International convections relating to maritime matters.
5) Provision of facilities for training of officers & rating of Merchant Navy.
6) Development of Sailing Vessels Industry.
7) Regulation of Ocean freight rates in overseas trade.

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What are incentives available for Ship Building Industries in India?

Apart from dedicated ship building parks/plot offered by various state maritime boards on concessional terms, Ministry of Shipping (Government of India) has also offered various incentive for Ship Building Industry India. Shipbuilding Financial Assistance Policy aims to provide financial assistance to Indian shipyards for shipbuilding contracts signed between 1 April 2016 to 31 March 2026, including the said dates. The financial assistance will be 20% of the ‘Contract Price’ or the ‘Fair Price’, whichever is lower, as determined by international valuers, for any vessel built in India subsequent to its delivery. The quantum of financial assistance shall reduce by three percent after every three years of the policy. This policy shall be in force for a period of 10 years from the date stipulated in the guidelines formulated by the Government for the purpose.

For details please refer to guidelines for 'Implementation of Shipbuilding Financial Assistance Policy' (as amended in October 2017) link.

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Is there a plan to develop port based smart cities in India?

Yes, there are plans to develop Smart Industrial Port Cities. Initially such cities will come up near Kandla and Paradip ports.

For more information, click here.

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What are the initiatives taken by the Indian government in ports sector?

Government of India has launched major initiatives to upgrade and strengthen ports and shipping in the country including enabling policy measures to facilitate private investments in this sector. Some of the key initiatives like Sagarmala Project, dredging and navigation for 111 inland waterways , financial assistance for ship building in India, promotion of cruise shipping and cruise terminals in India, incentives for coastal shipping and development of 13 Coastal Economic Zones along the coastline of India.

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What are Coastal Economic Zones?

Coastal Economic Zones (CEZ) are geographically contiguous districts within a State that are either coastal districts or districts having a strong port linkage. CEZs would link Major and Non-major ports, Industrial units and evacuation infrastructure into a single system at regional level. CEZs would fuel port-led industrialization program. Ministry of Shipping had identified 13 CEZ along the Indian coastline under Sagarmala Program. For details, please refer to link.

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