Role of ports and logistics infrastructure

In today scenario India contributed to the fastest growing economies in the world with a GDP. Indian Ports play an important role in the overall economic development of the country. Approximately 95 % of India’s merchandise trade volume passes through sea ports. Port-led industrialization is the third pillar of the port-led development model. Sagarmala Programmes providing a new platform in improving the efficiency of ports and it also help to increase the profit turnover. Ports play a crucial role in reducing domestic logistics costs and facilitate EXIM-oriented manufacturing by reducing logistics time and variability. Many countries with large coastlines, like China, have leveraged ports for aiding industrialization.

India has 12 major ports and approximately 200 non-major ports administered by Central and State Governments respectively. Many ports in India are evolving into specialized centers of economic activities and services and are vital to sustain future economic growth of the country. India scores poorly on the quality of infrastructure and logistics costs, which are at the core of driving export competitiveness. Export cargo moving from the manufacturing clusters to the ports, especially from the Northern cluster, is subjected to high inland logistics cost.

Port-led industrialization has been developed, which combines the growth potential of port-linked industries with the competitive location for each industry. These locations have also been mapped to the relevant major and non-major ports in the region which can most optimally facilitate the movement of cargo from the industrial locations.