Aashvee Prisha
Policy Update
Background
The Ministry of Ports, Shipping and Waterways (MoPSW) was created by renaming and expanding the former Ministry of Shipping in November 2020.1 Prime Minister Narendra Modi noted this change brings “clarity in name, and more clarity in work” by explicitly including Ports and Waterways alongside Shipping.2
The Ministry’s mandate spans planning, policy, and regulation for India’s maritime sector– including modernisation of the 12 major ports, development of inland waterways, coastal shipping, and shipyards- to boost trade, connectivity, and the blue economy. For example, the government’s flagship Sagarmala Program (2015) lays out a National Perspective Plan to harness India’s 7,500 km coastline and reduce logistics cost via port-led industrial growth.
Similarly, the Maritime India Vision 2030 sets 11 targets and envisages 300,000–350,000 Crore investment in ports, shipping, and waterways over the decade. These initiatives aim to benefit exports/imports industries, and are in line with “Port-led development” goals.
Source: https://shipmin.gov.in/
Functioning
MoPSW operates through statutory bodies and schemes. It administers 12 Major Port Trust Authorities, the Directorate General of Shipping, and the Inland Waterways Authority of India for national waterways. Key programs include port modernisation, new port development and connectivity (via Sagarmala), and inland water transport (e.g., Jal Marg Vikas Project for River Ganga). Under Sagarmala, projects span ,port expansion, link roads/rails, port-proximate industrial clusters, and coastal community development. In FY2023-24, MoPSW reports, Sagarmala enabled completion of 9 port projects and sanctions of 5 new projects. The Ministry also issued the “Sagar Samajik Sahyog” to major ports to support local socio-economic projects.
Source: https://sagarmala.gov.in/
In the shipping sector, MoPSW aims to grow India’s merchant fleet and tonnage. It revised the Right-of-First-Refusal to favour Indian-built/flagged vessels, promoting ‘ Aatmanirbhar Bharat’ tonnage. India was re-elected to the IMO Council (2024-25) with the highest vote tally, reflecting its rising profile. The government has announced a ₹30,000 Cr Maritime Development Fund for shipbuilding and repair clusters and mega shipbuilding parks to make India a shipbuilding hub.3 Ports & IWT schemes are being integrated: for example, electric-hybrid ferries were launched on Ganga to reduce emissions, and the Cruise Bharat Mission seeks to double cruise passenger traffic by 2029.
Challenges
Execution bottlenecks persist. Only a fraction of Sagarmala projects are completed, suggesting slow implementation. Inland waterways require continuous dredging and terminal works; under the Jal Marg Vikas project, the IWAI is still building locks, terminals, and jetties to ensure year-round navigation. Despite the Ministry’s focus, some port projects face delays due to land and clearances. In addition, while waterways span 14,500 km, full operationalization is ongoing. These issues highlight the need for coordinated governance and sustained funding to meet MoPSW’s goals.
Performance
MoPSW’s initiatives have given strong recent growth. Major ports’ cargo handling capacity nearly doubled in a decade- from ~800 MTPA to ~1,630 MTPA by March 2024.4 Efficiency has improved markedly: container dwell time is down to 3 days, and average port Turnaround Time is only 0.9 days – better than the US or Singapore. India’s Global Shipping Network ranking rose from 44th in 2014 to 22nd in 2023. In FY2023-24, 98 port modernisation projects were completed under Sagarmala, boosting capacity by 230 MTPA.
In land-locked and riverine connectivity, results are even more dramatic. National Waterways jumped from 3 to 29 by 2024-25, with navigable routes of 14,500 km. A 2025 MoU with Rhenus Logistics targets 1 MMT annual IWT cargo by 2025 with 20 barges.
TERI experts note that “the performance of Indian ports on most parameters has been low”, but recent infrastructure investments and ease-of-doing-business (EOBD) reforms are paying off: average ship turnaround times have shortened, and berth productivity is up. Indeed, four ports each handled record cargo in FY23, and turnaround time at major ports has dropped to 48 hours on average.
Globally, India’s ports are still catching up with best-in-class systems. Singapore- a benchmark hub- handled 30 million TEUs in 2023 and is moving toward the fully automated Tuas Mega Port with AI- AI-operated cranes. By contrast, China’s Belt and Road program invests heavily in port nodes from Colombo to Gwadar and East Africa, reshaping regional trade routes. EU and advanced economies are racing on decarbonisation with the launch of Green Shipping Corridors with low-carbon fuel supply chains. The EU has extended its Emissions Trading Schemes to cover shipping. By comparison, Indian ports are only now setting renewable energy targets, and projects are underway.
Impact
The Ministry’s policies bear fruit in India’s maritime and coastal economy. Ports are engines of growth. They facilitate 95% of India’s trade volume and support coastal industries. In Gujarat, for example, port-led development has spurred chemical, textile, and steel clusters inland. Efficient ports lower trade costs. Local businesses note that expanding port capacity makes imports cheaper — “allowing traders easy access, reducing transportation and cargo handling costs,” as one coal importer put it.
Nationally, the port sector contributes to employment and foreign exchange earnings. For states, ports anchor urbanisation and infrastructure— Gujarat’s Ports for Prosperity vision has earned it top logistics indices, while underdeveloped eastern ports highlight regional disparities. In FY22-23, major ports accounted for 55% of national cargo, underscoring their central role. Importantly, port modernisation feeds into the larger Blue Economy: improved ports boost coastal tourism, fisheries exports, and ocean-based energy projects.
Green and sustainable initiatives also signal impact: in Feb 2024, two battery-electric catamarans were deployed in Varanasi (Ganga) to ferry pilgrims, supporting tourism while cutting emissions. India’s first indigenous hydrogen fuel cell vessel (2024) was flagged off at Varanasi, and the VOC Port was showcased as a future hydrogen-bunkering hub. MoPSW launched a Green Tug Transition programme (2024) to shift harbour tugs to eco-friendly fuels. These actions benefit India’s decarbonisation goals in transportation.
On tourism and heritage, the Ministry is expanding the cruise economy and cultural assets. The Cruise Bharat Mission(2024) aims to double cruise passenger traffic by 2029, leveraging Gujarat and Mumbai port. A 2024 lighthouse photo exhibition & new projects aim to turn coastal lighthouses into tourist sites. The Union Cabinet in October 2024 approved a “National Maritime Heritage Complex” at Lothal as a world-class maritime museum highlighting India’s ancient Harappan port history.
Emerging Issues
- Project delays and clearances: Large projects still face land, bureaucratic, and environmental delays. Streamlining approvals and ensuring robust Sagarmala and maritime cluster governance to accelerate implementation.
- Connectivity loops: Some ports don’t have seamless road/rail tracks, and many Inland terminals still need feeder roads. Expanding multimodal corridors under PM Gati-Shakti to connect ports and inland waterways will strengthen state-level coordination.
- Environmental and Climate degradation: Degrading waterways and port expansion must balance ecology, & rising sea levels threaten coastal infrastructure. Enforcing green port standards and promoting mangrove afforestation and deepening coastal area management in planning will help sort this issue.
- Geopolitical and security risks: Strategic shifts also matter. China’s Maritime Silk Road program, deploying port investments across Asia and Africa, is altering supply chains while India is responding with its corridor initiatives like India Middle East Europe, conflict in key waterways can disrupt shipping, recent Houthi attacks forced carriers to reroute via Cape of Good Hope, adding extra usage of fuel. Such shocks highlight India’s gullibility and the need for redundancy.
Way Forward
The Ministry of Ports, Shipping and Waterways must consolidate its gains by meeting the targets it has set. Long-term visions like Maritime India Vision 2030 and Maritime Amrit Kamal Vision 2047 show ambitious outcomes.5 Going forward, the emphasis should be on completing these projects. At the macro level, MoPSW’s contributions underpin India’s broader economic objectives. Efficient ports and waterways reduce transport costs, enhance exports, and link underserved regions.
Support emerging Green Corridors by designating domestic pilot routes that mandate low-carbon fuels and clean energy. The RIS think tank notes that five European ports formed a green corridor network in 2022. India should aim to join or mirror such coalitions.
Address state-level differences. Special development funds or PPP models can be directed to underperforming regions. For example, the Eastern Ports Vision Programme could emulate Gujarat’s success: incentivise adjacent SEZs around Paradip or Ennore. Facilitate private capital for tier-2 ports and terminals by easing land and rail access rules. Encourage ports to specialise by cargo type so that each region builds on its natural advantages, as experts she urged.
Conclusion
In summary, India’s port sector stands at a crossroads – with global examples to emulate and new technologies to deploy. As one industry observer notes, “Mundra has already proven that world-class operations are possible on Indian shores”. The challenge now is to scale such successes nationwide, aligning with climate goals and the evolving global trade landscape. With sustained investment, smart regulation, and international collaboration, India can bridge current gaps, secure its place as a major maritime hub, and achieve ambitious outcomes.
References
- Press Information Bureau (PIB), Government of India. (2020, November 12). Union Minister Shri Mansukh Mandaviya unveils plaque of Ministry’s new nomenclature: Ministry of Shipping renamed as the Ministry of Ports, Shipping and Waterways (Pattan, Pot Parivahan aur Jalmarg Mantralaya). Retrieved from https://pib.gov.in/PressReleasePage.aspx?PRID=1672290.
- Ministry of Ports, Shipping and Waterways, Government of India. (n.d.). Sagarmala: Background. Retrieved from https://shipmin.gov.in/division/sagarmala.
- Ministry of Ports, Shipping & Waterways, Government of India. (n.d.). Introduction. Retrieved from https://shipmin.gov.in/ (mission overview)
- United Nations Conference on Trade and Development (UNCTAD). (2024). Maritime Transport Indicators: Container port throughput (million TEUs). UNCTADstat. Retrieved from https://unctadstat.unctad.org (data for Singapore and India)
About the Contributor
Aashvee Prisha is a Research Intern at IMPRI. She is currently pursuing her undergraduate degree in Political Science, with a deep interest in international relations, gender diplomacy, and digital storytelling.
Acknowledgement
The author sincerely thanks Ms. Aasthaba Jadeja for her invaluable mentorship and guidance during the development of this article. Special thanks are also extended to her fellow IMPRI interns for their thoughtful inputs, support, and camaraderie throughout the process.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.
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