India’s Ports Sector Poised for Significant Capacity Growth by 2028

India’s ports sector is poised for significant growth, with an anticipated increase in annual capacity of 500-550 million tonnes between 2023 and 2028, as reported by Motilal Oswal Financial Services. This expansion is expected to stem from the rising handling of petroleum, oil, lubricants (POL), coal, and containerised cargo. Currently, ports manage 95% of India’s exports, reflecting their crucial role in trade facilitation.

Strategically located in the Indian Ocean, India has a vast coastline of around 7,500 kilometers and 20,275 kilometers of national waterways, positioning it as a potential leader in global maritime trade. Approximately 80% of the world’s maritime oil trade transits the Indian Ocean, enhancing India’s maritime prospects. In the fiscal year 2024, major ports handled 819 million metric tonnes, with a further 699 million metric tonnes processed between April 2024 and January 2025.

The port sector operates at a capacity of 2,604 million tonnes per annum and is forecasted to grow at three to six percent annually. Container traffic alone is expected to rise by four to seven percent over the next five years, signaling robust demand and the normalization of global supply chains. There is a marked distinction between major and non-major ports, with the latter demonstrating greater efficiency and recording higher traffic growth in the recent fiscal year.

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