New Delhi, Jan 10: The fragmentation of the global economy driven by tariff wars, sanctions, geopolitical tensions, and the prolonged effects of the Russia–Ukraine conflict is reshaping trade flows and supply chains. In this volatile environment, India faces global headwinds but also sees strategic openings to strengthen domestic resilience while boosting international competitiveness.
Shipping and ports stand out as a key sector to achieve this dual goal. More than 95% of India’s trade by volume and 70% by value moves via maritime routes, highlighting the sector’s centrality. Recent investments in port capacity, operational efficiency, and digitalisation, alongside projects like the Vizhinjam International Seaport, are reshaping India’s maritime infrastructure. Once fully operational, Vizhinjam is expected to reclaim transshipment cargo that previously bypassed India, reducing dependence on foreign hubs and lowering logistics costs.
Shipbuilding and strategic opportunities
Despite its long coastline and skilled workforce, India has historically lagged in shipbuilding. Collaborations with global leaders, including HD Hyundai, aim to scale domestic capacity for large commercial vessels, green ships, and specialised maritime assets. Expanding the merchant fleet, strengthening coastal shipping, and improving last mile port connectivity through road and rail links remain key priorities to unlock the sector’s untapped potential.
Ports and shipping as a multiplier for growth
Efficient ports directly reduce trade costs, enhancing competitiveness in export-oriented sectors. Port-led industrialisation anchors manufacturing zones, petrochemical hubs, renewable energy infrastructure, and logistics parks. Employment generation spans construction, operations, transport, and services. Coupled with domestic shipbuilding, India can also enhance national security and energy resilience, reducing dependence on foreign vessels.
Government initiatives and Budget opportunities
India’s Maritime Vision 2030 and Amrit Kaal Vision 2047 provide an integrated roadmap for ports, shipping, and shipbuilding. Sagarmala 2.0 focuses on port-led industrialisation, inland waterways, and logistics efficiency. The Indian Ports Bill, 2025, aims to modernise governance and align with global best practices. A Rs 69,725 crore package to boost shipbuilding targets India among the top 10 shipbuilding nations by 2030, aiming for a 5% share of the global market and 10 world-class shipyards by 2047.
Budget 2026–27 presents an opportunity to accelerate momentum. Key measures could include:
Long-term, low-cost financing for ports and shipbuilding projects.
Incentives for port-centric manufacturing and logistics clusters to drive exports.
Expanded Sagarmala 2.0 initiatives for modernisation, inland waterways, and coastal development.
Enhanced customs and port logistics efficiency to reduce vessel turnaround times and improve ease of doing business.
Key takeaway: India’s shipping, ports, and shipbuilding sector can act as a “power-lifter” for the economy, supporting trade, manufacturing, employment, and strategic autonomy amid global uncertainties. With focused policy support and strategic budgetary interventions, the maritime sector is poised to play a decisive role in India’s rise as a global economic powerhouse.