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India’s port sector thrives despite geopolitical uncertainties and trade restrictions, driven by rising domestic consumption, increasing trade volumes, and strong infrastructure.
Cargo volumes at Indian ports grew at a CAGR of 6.2 per cent over FY02 to FY25, according to the report.
India’s port sector remains unaffected by the geopolitical uncertainties and trade restrictions sparked by trade war. In fact, the sector is expected to grow faster than many major economies, according to a PL Capital report cited by ANI.
Rising domestic consumption, increasing trade volumes and strong government-led infrastructure are pushing the growth in India’s port sector, the PL Capital report added.
The rationale behind the growth as per the ANI report, is that the ports and economic growth happen together. The government’s mission to make India a global manufacturing hub with the increasing push for exports, is being the major factor to fuel the growth of ports and overall logistic sector, the report added.
Cargo volumes at Indian ports grew at a CAGR of 6.2 per cent over FY02 to FY25, according to the report. The growth at non-major ports was higher at 9.2 per cent compared to major ports at 4.7 per cent. The demand for port infrastructure remains strong due to increasing trade and infrastructure development in the country, it added.
India currently has 12 major running seaports and over 200 non-major ports, handling a combined capacity of approximately 2,700 million metric tonnes (mmt).
The Indian government has set a target to increase the total port capacity to 10,000 mmt by the year 2047.
The government’s infrastructure-led development including Sagarmala and PM Gati Shakti, the increase in industrial and manufacturing activity, growing containerization, and a shift towards multimodal logistics will lead to the growth in the sector, the report added.
The port sector will play an important role in India’s effort of becoming a USD 10 trillion economy by FY30.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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