World Economic Growth - An Overview
Estimate | Projections | ||
2024 | 2025 | 2026 | |
World output | 3.3% | 2.8% | 3.0% |
Advanced economies: | 1.8% | 1.4% | 1.5% |
United States | 2.8% | 1.8% | 1.7% |
Euro Area | 0.9% | 0.8% | 1.2% |
Emerging Markets and Developing Economies: | 4.3% | 3.7% | 3.9% |
Emerging and Developing Asia | 5.3% | 4.5% | 4.6% |
China | 5.0% | 4.0% | 4.0% |
India | 6.5% | 6.2% | 6.3% |
Middle East and Central Asia | 2.4% | 3.0% | 3.5% |
https://www.imf.org/en/Publications/
WEO/Issues/2025/04/22/world-economic-
outlook-april-2025
Future Outlook
Looking ahead, intensifying downside risks dominate future outlook, amid escalating trade tensions and financial market adjustments. The forecast for global growth has been revised markedly down, reflecting a highly unpredictable environment. Expectations are that divergent and swiftly changing policy positions and deteriorating sentiments can lead to even tighter financial conditions. Short and long-term growth prospects are expected to be hindered by a trade war and heightened trade policy uncertainty.
Global growth forecast for the next five years stands at 3.1%, marking its lowest level in decades. Lower inflation and ongoing monetary easing in many economies could provide a modest boost to global economic activity in 2025. Advanced economies are forecast to maintain a steady growth rate of 1.5% in 2024, with a slight uptick to 1.7% in 2025, while developing economies are projected to expand at an average rate of 4% over 2024 and 2025, marking a slight slowdown from 2023.
At this critical juncture, there is a need for countries to work constructively to promote a stable and predictable trade environment and to facilitate international cooperation, while addressing policy gaps and structural imbalances. Global headline inflation is expected to decline at a slightly slower pace. Inflation is expected to fall from 5.9% in 2024 to 4.5% in 2025, with advanced economies reaching their inflation targets sooner than emerging and developing markets.
https://www.imf.org/en/Publications/
WEO/Issues/2025/04/22/world-economic-
outlook-april-2025
Indias growth story is indeed a powerful narrative of ambition, innovation, and unparalleled potential. As per the second advance estimates by the National Statistics Office (NSO), the Ministry of Statistics and Programme Implementation (MOSPI), Indias real GDP is estimated to grow by 6.5% in FY 2024-25, as compared to real GDP growth rate of 9.2% in FY 2023-24, which was estimated to be the highest in the previous 12 years (barring FY 2021-22). Headline inflation was estimated at 4.1% during the year under review vis-a-vis 5.4% in the previous year, on account of high-frequency macroeconomic indicators, and indicating a promising outlook in the coming years.
Growth was mostly led by a significant uptick in government spending and prompted by a spike in exports, higher capex pick-up, and huge growth in consumption expenditure. Indias long-term growth story is believed to be intact.
Despite global challenges, India has emerged as an economic powerhouse and is moving up the global value chain and continues to be the worlds 5th largest economy in the worlds GDP rankings list, owing to its strong economic foundations and on the back of continued economic reforms, thriving domestic demand, careful financial management, high savings rate, and favourable demographic trends.
India GDP Current Growth and Future Projections (%)
India is poised to lead the global economic landscape, retaining its position as the fastest-growing major economy. According to the World Banks Global Economic Prospects (GEP) report, Indias economy is projected to expand at a robust 6.7% in both FY 202526 and FY 2026-27, far surpassing global and regional counterparts. With global growth expected to remain at 2.7% in 2025-26, Indias strong performance highlights its resilience and increasing influence in shaping the worlds economic future. A sustained growth reflects the countrys strong economic fundamentals and ability to maintain momentum despite global uncertainties, reinforcing its position as a key player in the global economy.
(Source: World Bank & International Monetary Fund)
Indias Infrastructure segment
Indias infrastructure sector is poised for unparalleled growth, driven by government initiatives and increased investments. A Morgan Stanley report projects that Indias infrastructure investment will increase from 5.3% of GDP in fiscal year 2024 to 6.5% by fiscal year 2029, representing a robust compound annual growth rate (CAGR) of 15.3%. This surge is expected to result in cumulative spending of US$ 1.45 trillion over the next five years, fostering sustained, high productive growth and boosting investment rates.
The infrastructure sector has transformed from a state of underdevelopment to a key driver of economic growth. Significant developments, from early postindependence projects to recent advancements in smart cities and national infrastructure pipelines, reflect the sectors dynamic evolution. The Smart Cities Mission, launched in 2015, aims to develop 100 smart cities across India with enhanced infrastructure, digital connectivity, and improved quality of life for residents. The Pradhan Mantri Awas Yojana (Urban) scheme, introduced in 2015, targets affordable housing for all, further contributing to urban infrastructure development.
Thrust on capex in Infrastructure segment
Infrastructure Investment in India
https://www.angelone.in/blog/indias-infrastructure-
sector-iourney-from-independence-to-2024
National Infrastructure Pipeline
Indias infrastructure sector is poised for strong growth, with planned investments worth US$1.4 trillion planned by 2025 under the National Infrastructure Pipeline (NIP). The governments ambitious National Infrastructure Pipeline (NIP) program outlines the injection of massive capital into various sub-sectors, including energy, roads, railways, and urban development. This unprecedented push is expected to spawn associated industries, create jobs, and stimulate the economy. Specific focus areas are the expansion of public digital infrastructure, clean and renewable energy projects, and establishing resilient urban infrastructure. This ambitious undertaking seeks to enhance Indias global competitiveness and improve the quality of life across its vast populace.
https://www.ey.com/en in/insights/infrastructure/
unleashing-india-s-infrastructure-potential-ey-
roundtable-insights
PM Gati Shakti - A key milestone in Indias infrastructure development
The PM Gati Shakti National Master Plan (Gati Shakti NMP) has transformed Indias infrastructure landscape with a coordinated, efficient, and integrated approach. Announced by PM Narendra Modi in October 2021, Mission Gati Shakti is a transformative infrastructure initiative with a proposed investment of Rs 100 trillion. It integrates 16 ministries and national schemes like Bharatmala, Sagarmala, UDAN, and various industrial corridors, creating a unified framework for roadways, railways, ports, waterways, and airports. The plan addresses inefficiencies in Indias traditionally compartmentalized infrastructure development approach.
https://www.india-briefing.com/news/pm-gati-shakti-
national-master-plan-achievements-2024-35336.html/
Programmes driving Indias infrastructure improvement
Key infrastructure programs, such as Bharatmala (highways), Sagarmala (ports), UDAN (aviation), and inland waterways, are seamlessly integrated into the Gati Shakti NMP. This coordinated approach enhances last-mile connectivity, facilitates the movement of goods and people, and optimizes the use of resources, enabling India to build a robust and efficient logistics network.
Gati Shakti - A vision for Indias future
PM Gati Shakti is more than just an infrastructure plan?it is a vision for Indias future. By fostering inter-ministerial collaboration, leveraging advanced technologies, and involving the private sector, the initiative is laying the foundation for sustained economic growth and global competitiveness.
As India aims to become a US$5 trillion economy and achieve the Viksit Bharat Vision 2047, PM Gati Shakti will remain a cornerstone of its infrastructure strategy. With its innovative, integrated, and inclusive approach, the scheme is poised to propel India into a new era of development, ensuring that its infrastructure sector becomes a benchmark for the world.
Achievements under Gati Shakti Scheme
The key achievements of Gati Shakti scheme include the evaluation of 208 major infrastructure projects valued at Rs 15.39 trillion, adhering to PM Gati Shakti principles. Furthermore, 434 projects across three railway economic corridors?Energy, Mineral and Cement Corridors, High Traffic Density Corridors, and Rail Sagar Corridors?have been reviewed and submitted to the Prime Ministers Office (PMO) for consideration. The success of PM Gati Shakti has caught the attention of several countries which are keen to replicate aspects of the platform. This global interest highlights Indias emergence as a model for infrastructure development among emerging economies.
Key Achievements of Gati Shakti Scheme
Infrastructure development | Over 8,891 km of roads and 27,000 km of railway lines planned. |
A 300km coastal corridor in Gujarat streamlined, cutting the number of NoC (No Objection Certificate) permissions from 28 to 13, boosting tourism and connectivity. | |
Leh to Kaithal Green Energy Corridor optimized for renewable energy transmission. | |
Technological integration | Leveraged GIS with 1,600+ data layers for real-time decision-making. |
Enabled faster project approvals and reduced delays, ensuring on-time and within- budget completion. | |
Identifying and resolving gaps | Addressed 156 critical gaps in coal, steel, and food distribution sectors. |
Enhanced last-mile connectivity for key economic zones. | |
State initiatives | Gujarat reduced clearances for its coastal corridor, UP planned new schools in underserved areas, and Goa developed disaster management plans using NMP. |
Cross sector collaboration | Ministries leveraged the NMP to address healthcare, skill development, and rural development gaps. |
Shipping is the life blood of the global economy. The international shipping industry is responsible for the carriage of around 90% of world trade. The global shipping industry is a vital component of the global economy, responsible for transporting the majority of world trade by sea. It encompasses various segments like container shipping, dry bulk shipping, and tanker shipping, facilitating the movement of goods and commodities across continents. The industry is a significant driver of international trade and economic growth, with a growing market and increasing capacity, although it faces challenges such as geopolitical risks and climate concerns.
The global container shipping industry is a large and complex market responsible for transporting a significant portion of global trade. Its experiencing a period of both growth and significant challenges, including market volatility and increasing focus on sustainability and technology. The market is estimated at USD 119.65 billion in 2025, and is expected to reach USD 139.45 billion by 2030, at a CAGR of 3.11% during the forecast period, according to Mordor Intelligence.
Shipping Container Market size was valued at USD 10.4 billion in 2023 and is poised to grow from USD 10.8 billion in 2024 to USD 14.55 billion by 2032, growing at a CAGR of 3.8% during the forecast period (2025-2032).
https://www.skyquestt.com/report/shipping-container-
market#:~:text=Shipping%20Container%20Market%20
size%20was,period%20(2025%2D2032).
The advancement in infrastructure at ports and in logistics is allowing for improved performance widening in container transport as well as adding value to the shipping container industry as it increases cargo volumes handled in each time frame. At present, such technological advancements, sustainability programs,
and evolving customer demands are all making radical waves in the transport sector.
Among the substantial trends is the progressive use of digital tools such as blockchain and Internet of Things (IoT), which further improve monitoring and tracking of the supply chain. Technology facilitates real-time visibility of the cargo, causing operational effectiveness with a reduced probability of loss or theft. Manufacturers explore sustainable materials and designs while reducing their impacts on the environment, due to the increased emphasis on eco-friendly activities.
The demand for the most effective transportation goods is modestly increasing along with globalization and the growing e-commerce sector. Moreover, there is a clear trend in industry towards sustainability as green containers have become a fashion. Thus, it is as good as said that the container operations are becoming safer and more efficient with technology such as tracking systems, container management software, and IoT- enabled containers.
Shipping containers have purposes other than being moved from port to port, such as transferring housing essentials, construction machinery, and transportation components. The big market players are increasingly undertaking strategic initiatives to compete effectively with changing industry trends. These big players are concentrating on reducing carbon footprint through sustainable practices, innovating green packaging, and discovering alternative materials.
https://www.skyquestt.com/report/shipping-container-
market#:~:text=Shipping%20Container%20Market%20
size%20was,period%20(2025%2D2032).
Shipping Container Market - Key Market Drivers
Expanding Global Trade and E-Commerce
The rapid growth of global trade and e-commerce is a major driver for the global shipping container market growth. Cross-border transactions are rising due to consumer demand for a variety of products accompanied by effective transport solutions. Shipping containers provide scalable, cost-effective logistics solutions for cross-border movements, which in turn support global supply chains and market growth in various industries.
Infrastructure Development and Port Modernization
Increased investments into port infrastructure and logistics networks have enhanced
the worlds container handling capacity. Modern ports with more advanced technological features will speed up operations, improve turnaround time, and increase container movement. However, these innovations are efficient enough to enable trade and transportation processes that raise demand for shipping containers in markets worldwide and are profiting continued industry growth.
https:/7www.skvquestt.com/report/shippinq-container-
market#:~:text=Shipping%20Container%20Market%20
size%20was,period%20(2025%2D2032).
Key Market Trends in Global Container Shipping Industry
Increase in Digitalization and IoT Integration: A
revolution is occurring in the global shipping container market trends, in the form of newly available loT-enabled containers. It will soon bring its own real-time tracking, increased security, and better logistics, and companies will be incorporating smart technology toward managing their container from source to destination. This way they can subsidize their operations as they adopt digital solutions across the board in the industry.
Growing Demand for Sustainable Containers: The
most important issue in the global shipping container market at the moment is that of sustainability. Green containers made up of recycled materials and using energy-efficient designs are emerging in the market. It is this development, driven by both environmental regulation and consumer demand for a greener practice, that is pushing these innovators at developing sustainable container solutions with smaller carbon footprints forward.
https://www.skyquestt.com/report/shipping-container-
market#:~:text=Shipping%20Container%20Market%20
size%20was,period%20(2025%2D2032).
Dry bulk shipping is considered a specialist shipping service. Dry bulk shipping refers to the process of transporting dry bulk commodities. These loads tend to be made up of large, unpackaged quantities of typically unprocessed items. These commodities include the likes of coal, iron ore, wheat, sugar and flour.
Due to the fact this form of cargo is typically unpackaged, spillages and cases of load contamination are more common. For this reason, this sub-industry is highly regulated. Companies that deal in dry bulk shipping, therefore, must be experts in factors such as temperature
and lighting variances, specialist loading and unloading procedures, and onboard pest/contaminant control.
The global dry bulk shipping industry is a vital part of the global supply chain, transporting essential raw materials like coal, iron ore, and grains across the world. It is expected to continue growing, driven by increased global seaborne trade and the demand for raw materials.
Dry Bulk Shipping Market size was valued at USD 162.6 billion in 2023 and is estimated to register a CAGR of over 4% between 2024 and 2032. Rapid urbanization propels the market as the growing cities demand vast quantities of construction materials such as cement and steel. The need for infrastructure development fuels increased shipments of bulk commodities, driving the demand for specialized vessels.
https://www.gminsights.com/industry-analysis/dry-
bulk-shipping-market
Dry Bulk Shipping - Global Statistics
https://www.gminsights.com/industry-analysis/dry-
bulk-shipping-market
India Shipping Industry
Indias shipping industry is a critical component of its economy, handling a large portion of the countrys trade and commerce. Its the backbone of Indias trade, facilitating around 95% of its foreign trade by volume and 70% by value. The industry is supported by a network of 12 major ports and over 200 smaller ports, along with a large merchant fleet.
India has 12 major and 200+ notified minor and intermediate ports. Under the National Perspective Plan for Sagarmala, six new mega ports will be developed in the country. The Indian ports and shipping industry play a vital role in sustaining growth in the countrys trade and commerce. India is the sixteenth-largest maritime country in the world with a coastline of 7,516.6 kms.
The Indian Government plays an important role in supporting the ports sector. It has allowed Foreign Direct Investment (FDI) of up to 100% under the automatic route for port and harbour construction and maintenance projects. It has also facilitated a 10- year tax holiday to enterprises that develop, maintain,
and operate ports, inland waterways, and inland ports. According to the Ministry of Shipping, around 95% of Indias trading by volume and 70% by value is done through maritime transport.
https://www.ibef.org/industrv/ports-india-shippinq
Maritime Transport is a critical infrastructure for the social and economic development of a country. It influences the pace, structure, and pattern of development. The Ministry of Ports, Shipping, and Waterways encompass within its fold ports, shipping, and waterways sectors which include Shipbuilding and Ship-repair, Major Ports, National Waterways, and Inland Water Transport.
Containerised Cargo Traffic
Indias container traffic has witnessed remarkable growth in recent years, setting the stage for a transformative era in the nations trade and economic development. Targeted policy reforms, extensive public and private investments, and a commitment to modernisation have collectively driven growth, resulting in significant improvements in port infrastructure, supply chain efficiency, and Indias overall trade competitiveness. Growth in this sector is not merely a reflection of increased global demand, but a testament to Indias strategic initiatives aimed at reshaping its logistics and trade infrastructure.
Indias maritime trade landscape has evolved rapidly, and container traffic is at the core of this transformation. Indias container throughput has risen significantly in the last decade with average annual growth of 6-8% in container volumes, driven by increasing imports and exports, improved port capacities, and strategic policy measures.
An increase in containerisation?the shift from bulk cargo to containerised shipping?reflects Indias expanding role in global trade. Container traffic in India has increased consistently over the past eight years from 8.20 (000 TEU) in FY16 to 12.28 (000 TEU) in FY24.
https://www.ibef.org/blogs/india-s-container-
traffic-boom-implications-for-trade-and-
economy#:~:text=Container%20traffic%20
in%20India%20has,expanding%20role%20in%20
global%20trade.
Container traffic in India (000 TEUs)
Year |
Total Cargo (MT) |
2015-16 | 8.20 |
2016-17 | 8.42 |
2017-18 | 9.14 |
2018-19 | 9.88 |
2019-20 | 9.98 |
2020-21 | 9.61 |
2021-22 | 11.22 |
2022-23 | 11.39 |
2023-24 | 12.28 |
2024-25 | 13.54 |
CONTAINER TRAFFIC IN INDIA:
Key growth drivers
Rising export-import activity
Indias merchandise exports have been steadily growing, reaching US$ 39.2 billion in October 2024 from US$ 33.43 billion in October 2023. This increase is driven by sectors like automotive, electronics, textiles, and pharmaceuticals, all of which benefit from containerised shipments. The rising demand for these goods internationally has contributed to the steady growth in container traffic.
Indias import dependency for critical components? such as electronics and machinery?has further contributed to inbound container traffic. This is reflected in the rising import value, from US$ 63.86 billion in October 2023 to US$ 66.34 billion in October 2024.
Shifts in global supply chains
The global supply chain realignment has positioned India as an alternative manufacturing hub. Major multinationals have diversified their supply chains by setting up operations in India, thereby boosting export volumes and driving higher container throughput.
Indias Production-Linked Incentive (PLI) schemes, particularly in sectors like electronics, pharmaceuticals, and textiles, have driven manufacturing exports, further supporting the containerisation trend.
E-commerce and consumption growth
Boom in e-commerce, particularly during and after the pandemic, has amplified demand for imported consumer goods, significantly boosting container traffic. Goods such as electronics, fashion items, and household appliances, typically transported in containers, have seen higher demand.
Moreover, as demand for faster delivery and inventory stocking rises, retailers are increasingly utilising containerised shipping to manage supply chain efficiency.
https://www.ibef.org/bloqs/india-s-container-
traffic-boom-implications-for-trade-and-
economy#:~:text=Container%20traffic%20
in%20India%20has,expanding%20role%20in%20
global%20trade.
Indias container traffic boom reflects a robust trade and economic landscape that is increasingly integrated into global markets. While challenges remain in the form of logistics costs, congestion, and regulatory inefficiencies, the countrys commitment to modernising port infrastructure and fostering seamless connectivity indicates a promising trajectory.
DRY BULK SHIPPING INDUSTRY IN
INDIA
The Dry Bulk shipping market is a rapidly growing sector in India, driven by increasing steel production, energy needs, and global seaborne trade. The industry remains an indispensable part of global commerce, transporting the foundational materials that power the cities, factories, and homes. The industry ensures an uninterrupted flow of goods through the arteries of international trade.
Dry bulk shipping involves cargo ships moving large amounts of materials such as fertilizers, sugar, foodgrains, steel, iron ore, minerals and other bulk commodities across the ocean. It is a growing business in India involving import and export of dry bulk commodities and has shown resilience. The sector witnesses a range of inland and port-related activities including comprehensive port handling, transport, and logistics services for a complete range of commodities.
Indias import trade volume in dry bulk commodities was a significant 359 MMT in 2023, with a strong growth rate, making India the second-largest import country for dry bulk commodities. This demonstrates a growth rate of 8.64% YoY, based on international trade volume.
Key growth drivers
Global trade expansion
X 188111
Emerging economies, particularly in the Asia-
Pacific, are experiencing rapid industrial growth, increasing the demand for raw materials.
Driven by liberalisation of trade policies and rising seaborne trade contribute to market growth, leading to significant growth in Indias dry bulk shipping industry.
Industrialisation and urbanisation
With the governments initiative on Make In India, industrial requirements for dry bulk cargoes continues to increase.
As the coal industry continues to grow, the demand for dry bulk shipping provide opportunities for market participants to expand business.
Technological advancements
? hHBH:
The Dry Bulk shipping industry is embracing digitalisation and technological advancements to enhance efficiency. Adoption of digital technologies enhances operational efficiency and reduces operational costs.
Growing use of advanced technologies such as real-time tracking solutions, predictive analytics and maintenance, and IOT applications helps bulk carriers optimise their operations and maintain competitiveness.
Source: https://public.axsmarine.com/blog/
dry-bulk-shipping-industry
MARITIME
= INDIA VISION 2030
With the objective of propelling India to the forefront of the Global Maritime Sector, Ministry of Ports, Shipping and Waterways has formulated Maritime India Vision 2030 (MIV 2030), a blueprint to ensure coordinated and accelerated growth of Indias maritime sector in the next decade. MIV 2030 has been formulated in consultation with over 350+ public and private sector stakeholders, comprising ports, shipyards, inland waterways, trade bodies and associations, national and international industry experts.
The Ministry of Ports, Shipping and Waterways envisages continuing the improvements in sectoral performance and in that regard formulated an extensive exercise to define Maritime India Vision 2030. MIV 2030 identifies over 150 initiatives across 10 themes covering all the facets of the Indian maritime sector and is a comprehensive effort to define and meet national maritime objectives.
Maritime India Vision - 2030 targets
KPI | Metric in 2020 | Target for 2030 |
Major ports with >300 mtpa cargo handling capacity | - | 3 |
% of Indian cargo transshipment handled by Indian ports | 25% | >75% |
% of Cargo handled at Major Ports by PPP/other operators | 51% | >85% |
Average vessel turnaround time (containers) | 20 hours | <20 hours |
Average container dwell time | 55 hours | <40 hours |
Average ship daily output (gross tonnage) | 16,500 | >30,000 |
Global ranking in ship building and ship repair | 20+ | Top 10 |
Global ranking in ship recycling | 2 | 1 |
Annual cruise passengers | 4,68,000 | >15,00,000 |
% Share of Indian seafarers across the globe | 12% | <20% |
% Share of Renewable Energy at Major Ports | <10% | >60% |
Increase in share of Merchandise
Merchandise exports from the country grew from US$ 394.4 billion in 2020-21 to US$ 675.4 billion in 202324. The notable that the merchandise trade balance has been declining during this period. Curbing the trade deficit has been Indias priority. As part of the US$ 2 trillion target, the government aims to maximise exports while reducing imports. This can be seen from the improving trade balance. Trade balance stood at US$ -102.6 billion in 2020-21 and improved to US$ -238.3 billion in 2023-24. This trend implies growing exports and diminishing imports dependency.
Indias Foreign Trade Policy
Indias foreign trade policy, or FTP, is an essential set of rules on how India does business with the world. The Directorate General of Foreign Trade (DGFT) takes charge of it. The main goals of Indias FTP are to boost exports, create favourable conditions for trade, and support steady economic growth.
Below are some key objectives of the Foreign Trade Policy, which aim to improve how India trades with the world:
a. Global Integration of India: The goal of the foreign trade policy FTP is to combine India with the world markets smoothly. It aims to showcase India as a trustworthy trade partner globally.
b. Creating a Supportive Ecosystem: Shifting from incentives, Indias foreign trade policy strives to build an environment that supports businesses, in line with the principles of Atma Nirbhar Bharat and Local goes Global.
c. Preparing for the Future: Its about gearing India up to face future challenges, focusing on making it one of the top exporting nations, especially during the anticipated Amrit Kaal period.
d. Collaborating with State Governments: Recognising the importance of local efforts, the policy encourages partnerships with state governments to promote exports at the grassroots level.
e. Tripling Indias Goods and Services Exports: The policy aims to push Indias exports up to US$2 trillion by 2030 - a huge jump from the present US$ 760 billion.
<Ha KEY FEATURES
2D OF FOREIGN TRADE POLICY
Below are some of the key features of the Foreign Trade
Policy 2023, shedding light on significant initiatives
aimed at enhancing Indias trade ecosystem:
1. Process Re-Engineering and Automation
The foreign trade policy 2023 prioritises efficiency through automated IT systems, reducing paperwork and streamlining processes. Continuation of schemes like Advance Authorisation and Export Promotion Capital Goods (EPCG) ensures accessibility to export benefits, especially for MSMEs, with reduced fees and simplified procedures.
2. Towns of Export Excellence
Introducing Faridabad, Mirzapur, Moradabad, and Varanasi as Towns of Export Excellence (TEE) alongside existing ones aims to boost exports, particularly in handlooms, handicrafts, and carpets. These TEEs will receive priority access to export promotion funds and benefit from Common Service Provider (CSP) support under the EPCG Scheme.
3. Recognition of Exporters
Exporter firms recognised for their performance will engage in capacity-building initiatives. Additionally, exporters with 2-star and above status will impart trade-related training, contributing to Indias skilled workforce for economic growth.
4. Promoting Export from the Districts
Collaborating with State governments, the policy aims to promote district-level exports through the Districts as Export Hubs (DEH) initiative. This involves identifying export opportunities and resolving concerns through State and District Export Promotion Committees.
5. Streamlining SCOMET Policy
With an enhanced understanding of SCOMET regulations, the policy strengthens compliance with international treaties. This ensures access to advanced goods and technologies for Indian exporters while facilitating controlled exports under SCOMET from India.
6. Facilitating E-Commerce Exports
Plans for e-commerce hubs and simplified procedures aim to boost e-commerce exports. Increased caps on courier exports and establishing Dak Niryat Facilitation Centers will support artisans, weavers, artisans, and MSMEs in reaching international markets.
7. Facilitation under the EPCG Scheme
The rationalisation of the EPCG Scheme includes exemptions for the dairy sector and reduced obligations for green technology products. The addition of the PM MITRA scheme expands benefits under the EPCG Scheme.
8. Facilitation under the Advance
Authorisation Scheme (AAS)
The Advance Authorisation Scheme offers dutyfree imports for manufacturing export items, with special provisions for prompt execution of export orders. Benefits are extended to 2-star and above status holders.
9. Merchanting Trade
Introducing merchanting trade enables the trade of restricted items without involving Indian ports, aiming to develop India as a merchanting trade hub akin to its global counterparts.
10. Amnesty Scheme
The one-time Amnesty Scheme addresses defaults on export obligations, relieving exporters burdened by duty and interest costs. Regularisation of pending cases offers exporters a fresh start with capped interest payments.
Enhancement of Ports and Logistics infrastructure in India
Efficient port and logistics infrastructure are vital for seamless export functioning. To reduce costs and improve efficiency, India focuses on enhancing and modernising its logistics network. Modernisation of major ports such as the Jawaharlal Nehru Port Trust (JNPT), Mumbai Port Trust (MPT) and the Chennai Port are part of the expansion activities have been conducted. Initiatives such as the Sagarmala Programme have been set up that aims to modernise the ports, promote development, and enhance connectivity with an investment of US$ 123 billion, thereby aiding exports from the country.
Similarly, tremendous effort has been made in the development of inland waterways, logistics parks and warehousing facilities. With significant investments in NW-1 (Ganga River), NW-2 (Brahmaputra River) and NW-3 (West Coastal Canal) there has been development of 111 national waterways, which has taken place. With an estimated investment of ~US$ 2 billion to reduce logistics costs and shipment times, 35 multi-modal logistics parks have been established. Moreover, US$ 1 billion has been invested to develop the cold chain network, specifically for perishable goods.
https://www.ibef.org/research/case-study/india-s-
export-ambitions-trade-strategy-to-achieve-us-2-
trillion-by-2030
Indias Ports:
An Overview
According to the Ministry of Shipping, around 95% of Indias trading by volume and 70% by value is done through maritime transport. India has 12 major and 200+ notified minor and intermediate ports. Under the National Perspective Plan for Sagarmala, six new mega ports will be developed in the country. The Indian ports and shipping industry play a vital role in sustaining growth in the countrys trade and commerce.
India is the sixteenth-largest maritime country in the world with a coastline of 7,516.6 kms. The Indian Government plays an important role in supporting the ports sector. It has allowed Foreign Direct Investment (FDI) of up to 100% under the automatic route for port and harbour construction and maintenance projects. It has also facilitated a 10-year tax holiday to enterprises that develop, maintain, and operate ports, inland waterways, and inland ports.
https://www.ibef.org/industry/ports-india-shipping
Cargo capacity at Major Ports (MT)
Year |
Total Cargo (MT) |
2015-16 | 965 |
2016-17 | 1,065 |
2017-18 | 1,451 |
2018-19 | 1,514 |
2019-20 | 1,535 |
2020-21 | 1,561 |
2021-22 | 1,598 |
2022-23 | 1,617 |
IBEF Report on Ports Sector Cargo traffic at Major Ports
Marine transport activity is driven by growth in output and trade worldwide. During April-March 2025, major ports recorded annual growth of 4.22% in cargo handling at 855 million tonnes, compared to 819 million tonnes in April-March 2024. The growth highlights the increasing capacity of these ports in accommodating rising trade volumes, reinforcing their status as key hubs of maritime trade and operational performance. This increase in traffic was driven by higher container throughput, fertiliser cargo handling, POL cargo handling, and that of miscellaneous commodities.
During the past decade, between 2014-15 and 2024-25, cargo volumes surged by a CAGR of 4% - from 581 million tonnes to approx. 855 million tonnes. Containerised cargo witnessed a 70% increase over the decade, from 7.9 million TEUs in FY 2014-15 to 13.5 million TEUs in FY 2024-25.
The Government has taken several measures to modernise port infrastructure, improve operational efficiency through mechanisation, and foster private sector participation, paving the way for growth in Indias maritime sector. Private sector participation has also been instrumental in this growth, with investments in PPP projects at major ports having increased from Rs. 1,329 crore in FY2022-23 to Rs. 3,986 crore in FY2024-25.
Growth trend in cargo handled by major ports during 2025-16 to 2024-25
Key Growth Drivers of Indias Ports Sector
In todays dynamic and rapidly evolving landscape, a multitude of opportunities beckon for those ready to innovate and adapt. From emerging markets and technological advancements to strategic expansions and evolving industry needs, the potential for growth and success is boundless. By harnessing these opportunities, the Company can drive significant progress, unlock new revenue streams, and position ourselves at the forefront of industry transformation. Embracing these possibilities with a proactive and forward-thinking approach will pave the way for long-term success and sustainable development.
Government Support for Coastal Development Initiatives: Supportive government policies offer
significant opportunities for growth and expansion. The Indian governments commitment to advancing the maritime sector is exemplified by initiatives like the Maritime India Vision 2030 (MIV 2030). This vision aims to transform India into a leading global maritime hub, which is expected to boost cargo movement and elevate demand for shipping services.
Port and Landside Logistics: Expanding into port and landside logistics presents a promising opportunity for significant revenue growth and service diversification. By integrating these critical components into our operations, the Company can enhance its logistical capabilities, provide comprehensive solutions across the supply chain, and capture new market segments, thereby maximizing our overall profitability and market presence.
Growth Potential in Indian Projects: There are substantial opportunities for expansion and investment in Indian projects, reflecting a vibrant landscape for growth. The dynamic development environment and
increasing infrastructure needs in India offer diverse avenues for strategic investments, enabling us to capitalize on emerging markets and drive significant business growth.
Growing Indian Economy and Increasing Trade Volumes: The expansion of the Indian economy, coupled with rising trade volumes, is driving a heightened demand for shipping and logistics services. This growth presents a valuable opportunity to capture a larger market share and leverage the increasing need for efficient and scalable logistics solutions across the region.
Private Ports: The rise of private ports in India is unlocking new business opportunities and fostering innovative growth avenues. As public ports face congestion challenges, private facilities are positioned to offer more efficient cargo handling solutions, creating lucrative prospects for streamlined operations and enhanced service delivery.
Automation: Embracing cutting-edge technologies, including automation, big data analytics, and artificial intelligence, will significantly boost operational efficiency, accuracy, and reliability. These advancements not only enhance safety but also streamline processes, reduce costs, and mitigate operational risks, creating a more resilient and agile business environment.
Indias Ports Sector: Key Challenges
In the dynamic landscape of business, various threats pose challenges to our operations and strategic goals. It is crucial to acknowledge and address these potential threats to safeguard the companys stability and growth.
Vulnerability to Bunker Price Volatility:
The maritime industry is significantly exposed to the volatility of bunker prices, which can fluctuate dramatically due to changes in global oil markets. This unpredictability poses a serious threat to operational costs, as sudden increases in fuel prices can lead to higher expenses for shipping companies.
Geopolitical Instabilities and Risk:
Geopolitical instabilities and regional conflicts present a substantial risk to international shipping and trade routes. Political unrest, territorial disputes, and economic sanctions can disrupt supply chains, delay shipments, and elevate operational risks. It is crucial for businesses to stay informed about geopolitical developments and develop contingency plans to navigate these uncertainties and protect their assets and operations
Indian Ship Repair Industry:
Indian dry docks are facing certain challenges such as shortage of ports with ship repair facilities, high funding costs, ship spares and technical challenges that could affect its reliability and efficiency. Issues such as dated infrastructure, skilled labour shortages, and competition from other regions may impact the quality and timeliness of repair services.
Fluctuations in Fuel Prices and Currency Exchange Rates:
The dual impact of fluctuating fuel prices and currency exchange rates can create financial instability for maritime operations. Variations in fuel costs can alter operational budgets, while exchange rate volatility can affect the cost of international transactions and investments. Businesses must adopt flexible financial strategies and robust hedging practices to manage these economic variables and maintain financial health.
Amrit Kaal Vision, 2047
Despite having a 7,500-km-long coastline, the modal share of Indias coastal and inland water transport is very low. The Maritime Amrit Kaal Vision 2047 focusses on enhancing ports capacity and promoting inland water transport and coastal shipping with a proposed investment of Rs 80 lakh crore. By channelling technology, digitisation, and renewable energy, the government is looking to give ports a facelift and make them safe, smart, secure, and sustainable.
There are proposals to increase the capacity of existing ports, develop new ones and maritime clusters, and enhance the efficiency of ports with the incorporation of the latest technology. Through these measures, the government hopes to improve multi-modal connectivity at the ports and subsequently improve the modal share of coastal shipping and inland waterways.
https://www.businesstoday.in/magazine/deep-dive/
story/maritime-amrit-kaal-vision-2047-indias-bold-
rs80-lakh-crore-push-to-boost-coastal-and-inland-
water-transport-445684-2024-09-12#:~:text=The%20
Amrit%20Kaal%20Vision%20also,inland%20water%20
transport%20(IWT).
Future outlook of Ports Sector
Increasing investment and cargo traffic point towards a healthy outlook for the Indian ports sector. Providers of services such as operation and maintenance (O&M), pilotage and harbouring and marine assets such as barges and dredgers are benefiting from these investments. Domestic waterways have found to be a cost-effective and environmentally sustainable mode of freight transportation. The government aims to operationalise 23 waterways by 2030.
To bolster the shipbuilding industry under the "Make in India" initiative, the Ministry introduced the Shipbuilding Financial Assistance Policy (SBFAP). This scheme, operational until March 2026, offers financial aid to Indian shipyards, encouraging competitiveness and securing global orders. With 88 vessel orders worth Rs. 6800 crore (US$ 820 million) procured by 31 shipyards over the past four years, the SBFAP has been instrumental. Amendments to the SBFAP guidelines now provide increased financial assistance for vessels powered by green fuels and hybrid propulsion systems, further fostering indigenous manufacturing and technological advancement.
https://www.ibef.org/industry/ports-india-shipping
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