{"id":42674,"date":"2025-05-03T18:56:44","date_gmt":"2025-05-03T13:26:44","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=42674"},"modified":"2025-05-03T19:03:22","modified_gmt":"2025-05-03T13:33:22","slug":"port-economy-to-drive-india-growth","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/03-05-2025\/port-economy-to-drive-india-growth","title":{"rendered":"Port Economy to Drive India\u2019s Growth"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>PM Modi said that Coastal States and port cities will become key growth centres for a developed India, during the commissioning of the Vizhinjam International Seaport in Kerala.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is the Port Economy?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The port economy refers to the <strong>economic activities and value generated through the functioning and development of ports<\/strong>, which serve as vital nodes in global trade and logistics networks.<\/li>\n\n\n\n<li>Ports facilitate the movement of goods and people, enable export-import operations, and support shipbuilding and repair.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>History of India&#8217;s Port Economy<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In ancient India, ports like <strong>Lothal (Gujarat), Muziris (Kerala), and Arikamedu (Tamil Nadu) <\/strong>served as vibrant centers of Indo-Roman, Indo-Greek, and Southeast Asian trade.<\/li>\n\n\n\n<li>During the medieval period, ports like <strong>Surat, Calicut, and Masulipatnam <\/strong>emerged as key hubs for trade with Arabs, Persians, Chinese, and Europeans.<\/li>\n\n\n\n<li>However, with the advent of colonialism the focus turned toward resource extraction, rather than national development.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Status of port development in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India has a vast coastline with <strong>13 major ports<\/strong> and over <strong>200 non-major ports.<\/strong> Together, they handle around <strong>95% of India\u2019s foreign trade by volume<\/strong> and <strong>70% by value.<\/strong><\/li>\n\n\n\n<li><strong>As of 2024\u201325, <\/strong>India ranks among the top <strong>20 countries<\/strong> in global shipbuilding.<\/li>\n\n\n\n<li>Two Indian ports, Jawaharlal Nehru Port Authority (JNPA) and Mundra Port, are among the <strong>top 30 globally.<\/strong><\/li>\n\n\n\n<li>As per the <strong>World Bank&#8217;s Logistics Performance Index (LPI), 2023 <\/strong>India moved up to <strong>22nd<\/strong> Rank in the Global Ranking in International Shipments category and the overall <strong>38th Rank<\/strong> in Logistics Performance Index score.<\/li>\n\n\n\n<li>The Vizhinjam Seaport is India&#8217;s first dedicated transshipment port, aimed at reducing dependence on foreign ports as<strong> 75%<\/strong> of India\u2019s transshipment occurs abroad currently.<\/li>\n\n\n\n<li>A <strong>shipbuilding and repair cluster <\/strong>is being developed in <strong>Kochi<\/strong> under the Sagarmala initiative.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"f6d9c8\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"946\" height=\"516\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/05\/cargo-handled-at-major-and-non-major-ports-in-india.png\" alt=\"cargo-handled-at-major-and-non-major-ports-in-india\" class=\"not-transparent wp-image-42691\" style=\"--dominant-color: #f6d9c8; width:488px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/05\/cargo-handled-at-major-and-non-major-ports-in-india.png 946w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/05\/cargo-handled-at-major-and-non-major-ports-in-india-300x164.png 300w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/05\/cargo-handled-at-major-and-non-major-ports-in-india-768x419.png 768w\" sizes=\"auto, (max-width: 946px) 100vw, 946px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Benefits of a Robust Port Economy<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Geostrategic Value: <\/strong>Ports enhance India&#8217;s maritime influence and support initiatives like<strong> SAGAR<\/strong> (Security and Growth for All in the Region) and <strong>Project Mausam.<\/strong><\/li>\n\n\n\n<li><strong>Regional Development: <\/strong>Port-led industrial zones catalyze infrastructure growth and attract private investment in hinterland regions.<\/li>\n\n\n\n<li><strong>Environmental Efficiency:<\/strong> Well-managed ports reduce carbon emissions by improving turnaround times and facilitating modal shift to railways\/inland waterways.\n<ul class=\"wp-block-list\">\n<li><strong>Turnaround time<\/strong> is the time a ship spends at port from arrival to departure.<\/li>\n\n\n\n<li><strong>Inland Water Transport (IWT)<\/strong> emits <strong>50% less CO\u2082 per tonne-km<\/strong> than road transport.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Employment Generation:<\/strong> Ports directly and indirectly support millions of jobs in logistics, warehousing, and ancillary sectors.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>High Logistics Costs:<\/strong> India\u2019s logistics cost is about <strong>13-14% of GDP<\/strong>, compared to <strong>8-9% <\/strong>in developed economies.<\/li>\n\n\n\n<li><strong>Dependency on Foreign Ports: <\/strong>Major transshipment activities rely on Colombo, Singapore, and Port Klang due to lack of domestic deepwater capacity.<\/li>\n\n\n\n<li><strong>Port Congestion,<\/strong> procedural inefficiencies and lack of digitization lead to delays, reducing global competitiveness.<\/li>\n\n\n\n<li><strong>Environmental Concerns:<\/strong> Port construction and dredging damage coastal ecosystems and marine biodiversity.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Government Initiatives<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Sagarmala Programme:<\/strong> It aims to reduce logistics costs by port modernization, port-led industrialization, and improved hinterland connectivity.<\/li>\n\n\n\n<li><strong>The Maritime India Vision 2030<\/strong> aims to enhance India&#8217;s maritime capabilities with a targeted investment of <strong>\u20b93 lakh crore<\/strong>, aiming to boost cargo handling capacity to over <strong>2,500 million <\/strong>metric tonnes.<\/li>\n\n\n\n<li><strong>National Logistics Portal (Marine)<\/strong> is being developed as a one stop digital platform where all maritime stakeholders are being integrated for easier and speedier services.<\/li>\n\n\n\n<li><strong>Establishment of the \u20b925,000 crore Maritime Development Fund (MDF): <\/strong>The fund aims to support long-term investments in the sector, with the government contributing 49% and the remaining 51% mobilised from ports and private sector investments.<\/li>\n\n\n\n<li><strong>PM Gati Shakti Plan<\/strong> integrates infrastructure planning across sectors to improve multi-modal logistics efficiency.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Ahead<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Develop Green Ports: <\/strong>Invest in shore power, LNG bunkering, and sustainable dredging to minimize environmental impact.<\/li>\n\n\n\n<li><strong>Private Sector Participation: <\/strong>Public-Private Partnerships (PPP) can expedite infrastructure upgrades and improve service quality.<\/li>\n\n\n\n<li><strong>Leverage Strategic Geography:<\/strong> India should maximize its location near major global trade routes to become a global transshipment and logistics hub.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/news\/national\/kerala\/port-economy-to-drive-indias-growth-to-new-heights-pm\/article69531070.ece\" rel=\"nofollow noopener\" target=\"_blank\"><strong>TH<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>Context<\/strong><\/h3>\n<li class=\"ms-5\">PM Modi said that Coastal States and port cities will become key growth centres for a developed India, during the commissioning of the Vizhinjam International Seaport in Kerala.<\/li>\n<p><\/p>\n<h3><strong>What is the Port Economy?<\/strong><\/h3>\n<li class=\"ms-5\">The port economy refers to the economic activities and value generated through the functioning and development of ports, which serve as vital nodes in global trade and logistics networks.<\/li>\n<li class=\"ms-5\">Ports facilitate the movement of goods and people, enable export-import operations, and support shipbuilding and repair.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/03-05-2025\/port-economy-to-drive-india-growth\" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-42674","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/42674","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=42674"}],"version-history":[{"count":4,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/42674\/revisions"}],"predecessor-version":[{"id":42693,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/42674\/revisions\/42693"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=42674"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=42674"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=42674"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}