Navigating India’s Maritime Transformation

This editorial is based on “Why the $30-trillion economy by 2047 will be built at sea” which was published in Hindu Business Line on 23/12/2025. The article brings into picture  India’s maritime sector as a key driver of its $30-trillion economic ambition, highlighting infrastructure expansion, strategic security, and sustainability. It underscores how ports, shipping, and maritime reforms are central to India’s long-term growth and global competitiveness.

As India advances toward its goal of becoming a $30-trillion economy by 2047, the seas will play a defining role in shaping this journey. With nearly 95% of trade by volume and 70% by value moving through maritime routes, ports and shipping have emerged as critical engines of growth. While recent gains in port efficiency, capacity expansion, and logistics reforms signal positive momentum, the scale of ambition ahead is far greater. By strengthening maritime infrastructure, integrating global supply chains, and sustaining reform momentum, India is well-positioned to turn its blue economy into a powerful driver of long-term, inclusive growth.

What are the Current Developments in India’s Maritime Sector? 

• Expansion of Port Capacity and Efficiency: India’s port infrastructure has seen significant expansion, with total capacity nearly doubling from about 1,400 MMTPA in 2013–14 to approximately 2,762 MMTPA in 2024–25, and major ports handling around 855 million tonnes of cargo in FY 2024–25. 
  • Improvements in operational efficiency such as reducing average vessel turnaround times from 93 to 48 hours in 2023-24, a reduction of 48.65%, have enhanced competitiveness and throughput.
• Structural Reforms in India’s Maritime Governance: Key maritime legislation have been enacted recently including the Merchant Shipping Act, 2025, Carriage of Goods by Sea Act, 2025, and the Indian Ports Act, 2025.
  • They are aimed at modernizing outdated colonial-era laws, align Indian maritime law with international standards, and improve governance, safety, environmental compliance, and ease of doing business.
• Maritime Amrit Kaal Vision 2047 & Investment Push: Under the long-term Maritime Amrit Kaal Vision 2047, the government has planned nearly ₹80 lakh crore (~$1 trillion) in investments over the next 25 years to develop next-generation ports, shipbuilding, inland waterways, green shipping corridors, and maritime clusters, aiming to boost India’s share of global seaborne trade.
  • Shipping Corporation of India (SCI) announced plans to expand its fleet to 216 vessels by 2047 with an investment of ₹1 Lakh Crores, adding 10 million Gross Tonnage (GT) and strengthening India’s global maritime competitiveness.
  • India Maritime Week 2025 showcased India’s growing global maritime leadership, with participation from over 85 countries, reinforcing commitments to sustainable growth and international cooperation. The event secured over ₹12 lakh crore in investments through 600+ MoUs, highlighting strong global confidence in India’s maritime vision.
• Coastal Shipping & Inland Waterways Development: The Coastal Shipping Act 2025 officially recognises coastal shipping as the fifth mode of transport alongside road, rail, air, and inland waterways, aiming to reduce logistics costs and improve multimodal connectivity
  • India achieved a record 145.5 million tonnes cargo movement on inland waterways in FY 2024–25, up from 18.1 MMT in FY 2013–14, registering a CAGR of 20.86%.
  • The number of National Waterways increased from 5 to 111, with the operational length growing from 2,716 km (2014–15) to 4,894 km (2023–24).
• Boost to Domestic Shipbuilding: Government initiatives include a ₹70,000 crore financial package to build shipbuilding and repair infrastructure, promote domestic ship ownership, and strengthen port facilities. 
  • Currently India 16th rank in global shipbuilding, aiming for top ten by 2030.
  • India’s Shipbuilding Mission aims to strengthen the entire maritime value chain by addressing 12 focus areas, including financing, shipbuilding, ship repair, leasing, crewing, and maritime services. 
• Maritime Human Resource Development: India’s maritime workforce has grown substantially, with the number of seafarers rising to over 3 lakh, making India one of the top global suppliers of trained maritime professionals. 
  • There are also sectoral efforts, for instance, maritime cybersecurity training programmes, covering shipboard IT–OT systems, port community systems, vessel traffic management systems (VTMS), and maritime critical infrastructure, are being promoted. 
    • These initiatives aim to create a cyber-secure maritime workforce, enhance safety of navigation, protect ports and shipping networks, and ensure compliance with IMO cybersecurity guidelines.
• Green Shipping and Sustainable Maritime Transition: India is actively promoting green and low-carbon shipping in line with its climate commitments. The Green Tug Transition Programme (GTTP)aims to induct 50 green tugs by 2030, reducing emissions at major ports. 
  • Additionally, India is developing Green Shipping Corridors with countries such as Japan, the Netherlands, and Norway, focusing on zero-emission maritime routes using green hydrogen and alternative fuels. 
    • These initiatives support India’s net-zero target by 2070 and align the maritime sector with global climate goals.
• Enhanced Maritime Security and Defence Preparedness: India has significantly strengthened its maritime security architecture to safeguard sea lanes and trade routes. 
  
  • Enhanced coastal surveillance, expansion of the Information Fusion Centre – Indian Ocean Region (IFC-IOR), and increased naval presence ensure maritime domain awareness. 
  • Indigenous warship building under Atmanirbhar Bharat has accelerated, with over 75% of Indian Navy vessels now built domestically, strengthening strategic autonomy and regional stability.
    • Over the past two decades, the Indian Navy has undergone a marked transformation from an import-dependent “Buyer’s Navy” to a predominantly indigenous “Builder’s Navy.”
• Port-Led Industrialisation and Coastal Economic Zones: Under the Sagarmala Programme, port-led industrial clusters and coastal economic zones are being developed to integrate manufacturing, logistics, and exports. 
  
  • More than 100 port modernisation projects, worth around ₹32,600 crore, have added 230 MTPA of capacity. 
  • In addition, 80+ connectivity projects worth ₹52,000 crore have improved nearly 1,500 km of port-linked infrastructure. 
    • Under its coastal development component, the programme has also benefited fishermen through improved fishing harbours and facilities.

What are the Key Issues Associated with India's Maritime Sector?

• Infrastructure Gaps and Capacity Constraints: While total port capacity has increased to ~2,762 MTPA (2024–25), India handles only around 10% of global seaborne trade. 
  • Major ports like Jawaharlal Nehru Port (JNPT) handle 10 million TEUs annually, compared to Shanghai’s 50 million TEUs, highlighting capacity and scale limitations.
  • Draft restrictions at several Indian ports restrict the handling of large container vessels, forcing transshipment through foreign ports such as Colombo and Singapore.
• High Logistics Cost and Hinterland Bottlenecks: Despite improvements, challenges remain in last-mile connectivity, multimodal integration, and coordination across road, rail, ports, and inland waterways.
  
  • Congestion at ports, limited availability of dedicated freight corridors in some regions, and uneven infrastructure quality continue to raise transaction costs. 
  • Whereas, Southeast Asian hubs, particularly Singapore and Malaysia’s Port Klang, set the global benchmark for vessel processing speeds that India is currently chasing. 
    • High TRT in India often stems from "pre-berthing" delays, whereas SEA ports use advanced automated stacking and AI-scheduling to ensure ships spend less than a day at berth.
• Insufficient Global Shipping Fleet and Competitiveness: Although India handled 95% of its trade by volume and 70% by value through maritime routes, the nation’s share of the global merchant fleet is only about 1.2%, and many vessels are ageing, limiting India’s ability to replace foreign-flagged ships and reduce heavy annual freight payments.
  • For instance, India pays around 75 billion dollars to foreign shipping companies as rent for shipping services.
• Environmental Sustainability Challenges: India’s coastline faces rising climate risks, 33.6% of the coastline is vulnerable to erosion, while ports face increasing threats from cyclones and sea-level rise.
  • Additionally, maritime emissions remain a concern, with shipping contributing significantly to coastal pollution. 
  • Although initiatives like the Green Tug Transition Programme and green shipping corridors exist, large-scale adoption of low-carbon fuels and port electrification is still in early stages.
• Weak Integration of Inland Waterways: Despite growth in inland water transport, from 18 million tonnes in 2014 to over 145 million tonnes in 2024, its share in overall freight movement remains small. 
  • Limited last-mile connectivity and underdeveloped terminals restrict its potential as a low-cost, low-emission alternative to road transport.
• Rising Strategic Competition in the Indian Ocean Region (IOR): India faces growing strategic pressure due to the expanding naval footprint of extra-regional powers, particularly China, under its “String of Pearls” strategy. 
  • China has developed or gained access to a network of ports and dual-use facilities across the Indian Ocean, including Gwadar (Pakistan), Hambantota (Sri Lanka), Kyaukpyu (Myanmar), Djibouti (Horn of Africa), and port access in the Maldives and Seychelles.

What Reforms are Required to Strengthen India’s Maritime Sector? 

• Upgrade Port Infrastructure and Capacity: India must accelerate the development of deep-draft ports, automated terminals, and modern cargo-handling systems to accommodate large container vessels. 
  • Expediting projects under Sagarmala 2.0 and prioritising dredging, mechanisation, and port-led industrial clusters will reduce dependence on foreign transshipment hubs and enhance global competitiveness.
• Strengthen Multimodal Connectivity and Logistics Integration: To reduce logistics costs further, seamless integration of ports with rail, road, and inland waterways is essential. 
  • Expanding Dedicated Freight Corridors (DFCs), multimodal logistics parks, and digital cargo tracking platforms will improve last-mile connectivity and cut transit time and costs.
• Expand India’s Merchant Fleet and Shipbuilding Capacity: India must increase its share in the global shipping fleet by incentivising domestic shipbuilding and ship ownership through financial support, long-term credit, tax incentives, and assured cargo support. 
  • Implementing the ₹70,000 crore shipbuilding and repair package effectively can reduce dependence on foreign vessels and retain freight earnings within the country.
• Strengthen Maritime Security and Naval Preparedness: Enhanced surveillance through coastal radar networks, satellite monitoring, and UAVs, along with increased naval presence in the Indian Ocean Region, is essential. 
  • Strengthening institutions like the Information Fusion Centre–IOR and expanding maritime partnerships will ensure secure Sea Lines of Communication (SLOCs).
• Promote Green and Sustainable Shipping: Accelerating the transition to green fuels, electrification of ports, and low-emission vessels is critical. 
  • Scaling up initiatives such as the Green Tug Transition Programme, promoting green hydrogen corridors, and incentivising clean ship technologies will align India’s maritime growth with climate commitments.
• Boost Inland Waterways and Coastal Shipping: Improving navigability, terminal infrastructure, and cargo handling on National Waterways can significantly reduce logistics costs. 
  • Integrating inland waterways with coastal shipping and rail networks will create a more efficient multimodal transport ecosystem.
• Strengthen Maritime Skill Development and Innovation: Focused investment in maritime education, R&D, and advanced skill training—especially in areas like ship design, marine engineering, cyber security, and autonomous navigation—is essential. 
  • Establishing centres of excellence and public–private partnerships can bridge skill gaps.
• Improve Governance and Ease of Doing Business: Streamlining regulatory approvals, harmonising laws across ministries, and digitising port and customs processes can reduce delays.
  • Stronger coordination among central and state authorities will improve project execution and investor confidence.
• Deepen Regional and Global Maritime Cooperation: India should leverage forums such as IORA, BIMSTEC, and the Quad to strengthen maritime cooperation, develop common standards, and promote freedom of navigation. 
  • Strategic partnerships can enhance resilience against geopolitical disruptions.
• Balance Development with Coastal and Environmental Protection: Implementing climate-resilient infrastructure, protecting coastal ecosystems, and enforcing environmental safeguards are essential to ensure long-term sustainability of maritime growth while supporting livelihoods of coastal communities.

Conclusion: 

India’s ambition of becoming a $30-trillion economy by 2047 depends heavily on strengthening its maritime sector, which carries over 90% of the country’s trade. Modern ports, efficient logistics, and strong maritime security are essential to support export-led growth. Aligning maritime development with the SDGs, especially on sustainable infrastructure and climate action, will ensure long-term resilience. Investments in green shipping, port modernisation, and skill development can transform India into a global maritime hub. Together, these efforts can position India as a secure, sustainable, and competitive maritime power.

Drishti Mains Question Q. India’s ambition of becoming a $30-trillion economy is closely linked to the strength of its maritime sector.Examine the role of ports, shipping, and maritime infrastructure in achieving this goal.