India’s ports sector is on a rapid growth, with plans to expand capacity by 500-550 MTPA annually between FY23 and FY28. A report by Motilal Oswal Financial Services highlights that rising cargo volumes, particularly in petroleum, coal, and containerized goods, are driving this expansion. With a strategic maritime location, strong infrastructure, and increasing global trade, India’s ports are set to play a crucial role in economic growth.
India’s ports sector is set for significant expansion between FY23 and FY28, with capacity expected to grow by 500-550 MTPA annually, according to a report by Motilal Oswal Financial Services. This growth will be driven by increased handling of petroleum, oil, lubricants (POL), coal, and containerized cargo.
Currently, Indian ports manage 95% of the country’s export volumes and 70% of export values, highlighting their crucial role in trade. With a coastline spanning approximately 7,500 km and national waterways covering 20,275 km across 24 states, India’s ports enjoy a strategic position in the Indian Ocean. This location aligns with 80% of the global maritime oil trade, reinforcing India’s potential as a dominant maritime player.
India’s port infrastructure consists of 13 major ports and 205 non-major ports. In FY24, major ports handled 819 MMT of cargo, and between April 2024 and January 2025, they managed 699 MMT. The sector currently operates with a total capacity of 2,604 MTPA, which is expected to expand significantly in the coming years.
Cargo traffic is projected to grow at an annual rate of 3-6%, with utilization rates stabilizing at around 55% over the medium term. Container traffic is anticipated to increase at a 4-7% annual rate over the next five years, driven by rising imports, falling freight costs, and the normalization of global supply chains. Transshipment remains a critical segment, accounting for about 25% of India’s container throughput, with key ports like Chennai playing a vital role.
The report highlights the distinct roles of major and non-major ports in India’s port ecosystem. Major ports, managed by the central government, are typically located near industrial hubs and handle diverse cargo based on regional demand. However, they often face congestion due to shared access channels. In contrast, non-major ports, managed by state governments or private operators through public-private partnerships, offer greater operational flexibility and efficiency, leading to reduced congestion. In FY23, non-major ports saw a 7.6% increase in cargo traffic, outpacing the 4.7% growth recorded at major ports.
Both major and non-major ports will play a crucial role in the sector’s overall development. The expected rise in cargo traffic, coupled with improvements in infrastructure and operational efficiency, will strengthen India’s position as a key enabler of trade and economic growth. The ongoing expansion of port capacity, combined with strategic advantages and technological advancements, positions India’s maritime sector for long-term success.
