Business News | Despite Geopolitical Tensions, India's Port Sector Expected to Grow Faster Than Major Economies: Report
Get latest articles and stories on Business at LatestLY. India's port sector is expected to grow at a faster pace than many major global economies, despite global geopolitical tensions and uncertainties according to a recent report by PL Capital.
New Delhi [India], July 22 (ANI): India's port sector is expected to grow at a faster pace than many major global economies, despite global geopolitical tensions and uncertainties according to a recent report by PL Capital.
The growth is being driven by rising domestic consumption, increasing trade volumes, and strong government-led infrastructure projects.
It stated, "we believe, despite ongoing geopolitical tensions and global uncertainty, India's ports sector is expected to grow faster than other major economies, driven by an increase in consumption and government-led projects".
The report stated that ports and economic growth in India go hand in hand. The government's push to make India a global manufacturing hub, along with efforts to boost exports, is expected to fuel the growth of ports and the overall logistics sector.
As per report, cargo volumes at Indian ports grew at a compound annual growth rate (CAGR) of 6.2 per cent over FY02 to FY25.
This growth was led by non-major ports, where volumes rose at a higher CAGR of 9.1 per cent, compared to a 4.7 per cent CAGR growth at major ports. The demand for port infrastructure remains strong due to increasing trade and infrastructure development in the country.
India currently has 12 major seaports and over 200 non-major ports, with a combined capacity of approximately 2,700 million metric tonnes (mmt). Major ports fall under the jurisdiction of the central government, while non-major ports are managed by state governments.
The country has set an ambitious target to increase total port capacity to 10,000 mmt by the year 2047.
The report highlighted several factors that are expected to drive this growth, including the rising aspirations of India's young population, the government's strong infrastructure focus through programs like Sagarmala and PM Gati Shakti, the increase in industrial and manufacturing activity, growing containerization, and a shift toward multimodal logistics. In addition, private sector participation in port development is also rising.
The report also mentioned that the ports sector is undergoing a structural transformation. Capacity expansion, use of technology to reduce turnaround time, better loading and unloading standards, and improved connectivity are all contributing to making Indian ports more efficient and capable of handling future trade volumes.
As India moves toward its goal of becoming a USD 10 trillion economy by FY30, the port sector is set to play an important role in enabling this economic journey. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)