The ports infrastructure market in India is projected to grow at a CAGR of over 9% during 2016-2025, on account of heavy infrastructure funding at ports and related infrastructures such as connecting roads, railways and Coastal Economic Zones. Additionally, National Perspective Plan of Government of India envisaged an investment of over USD10 billion for the next five years, aimed at development of ports. This investment inflow is anticipated to minimize demand and supply gap at ports in India in the coming years.
Implementation of Sagaramala initiative by Government of India presents investment opportunities for ports and related infrastructural development in order to boost maritime trade in India. Moreover, modernization and expansion of ports by private international companies is anticipated to fuel growth in marine transport sector in India, during the forecast period. Additionally, several Coastal Economic Zones (CEZs) projects are underway to concentrate manufacturing clusters near major ports and this is expected to surge demand for maritime trade in the country during 2016-2025.
Port led industrialization is anticipated to provide immense scope for reduction in logistics costs. Rising number of Public Private Partnerships and 100% FDI under automatic route for development of ports is anticipated to encourage international companies to start operations in India in the ensuing years.