Hindu Editorial Analysis : 30-November-2024
India’s strategic geographical position and its growing economy make its ports vital gateways for global trade. The Sagarmala Project, initiated by the Government of India, has played a key role in transforming the country’s maritime landscape. However, despite impressive progress, there exists a performance gap between well-performing ports and those that continue to lag behind. Addressing this divergence is essential for maximizing India’s maritime potential.
India’s Port Sector: A Vital Economic Lifeline
Ports are integral to India’s economy, as over 80% of the country’s merchandise trade (by volume) is carried by sea. With a coastline of more than 7,500 km, India is strategically positioned to play a major role in global trade. The country started with only five major ports at the time of independence, but today, it boasts 13 major and over 200 non-major ports. These ports are crucial nodes in global supply chains and support the growth of India’s economy.
- Major Ports: Managed by the Union Government and regulated by the Indian Constitution’s Union List.
- Minor Ports: Managed by state governments through State Maritime Boards, such as those in Gujarat, Maharashtra, and Tamil Nadu.
Current State of Port Performance
In 2023, India’s ports showed impressive growth, with nine ports making it to the global top 100 rankings in the Container Port Performance Index (CPPI). These include Visakhapatnam, Mundra, and Jawaharlal Nehru Port. This achievement reflects significant improvements in operational efficiency, cargo handling, and service delivery.
Despite these advances, there remains a performance gap between the top ports and those that have not seen similar improvements, particularly in the Eastern and Southern regions of India.
The Sagarmala Project: Revolutionizing Port Infrastructure
Launched in 2014, the Sagarmala Project aims to modernize India’s ports and improve connectivity. Its key components include:
- Port Modernization: Upgrading infrastructure like terminals, berths, and cargo handling equipment.
- Coastal Shipping: Promoting coastal routes to reduce congestion on roads and railways.
- Inland Waterways: Developing efficient transport networks along rivers and canals.
- Logistics Efficiency: Streamlining logistics processes to reduce costs and improve efficiency.
Achievements and Challenges
The Sagarmala Project has achieved significant milestones, including:
- Port Capacity: India’s key ports had a combined capacity of 1,598 million tonnes per annum (MTPA) in FY22, with expectations of continued growth.
- Turnaround Time: Reduced from 82.32 hours in FY17 to 62.16 hours in FY21.
- Growth of Non-Major Ports: Non-major ports now account for 45% of India’s total cargo traffic.
However, challenges persist:
- High Turnaround Time: Despite improvements, India’s turnaround time is still much higher than global standards.
- Productivity Gaps: Ports in the Eastern and Southern regions lag behind more efficient ones in the West.
- Customs Delays: Complicated customs procedures result in delays and higher costs compared to global ports like Singapore.
Strategic and Economic Impacts of Port Development
The modernization of India’s ports has far-reaching implications for the nation’s economy:
- Trade Growth: In FY24, India’s key ports handled 817.97 million tonnes of cargo, reflecting a 4.45% growth from the previous year.
- Job Creation: Port development generates millions of jobs in transportation, logistics, and manufacturing.
- Foreign Investment: Improved port infrastructure attracts foreign investments, boosting trade.
- Boost to Blue Economy: India’s well-developed ports support the export of marine products, enhancing the country’s role in the blue economy.
Future Prospects and Expansion Plans
India’s maritime vision is outlined in two ambitious initiatives:
- Maritime India Vision (MIV) 2030: Aims to increase port capacity to 3,000 million tonnes per annum, reduce logistics costs, and enhance efficiency.
- Maritime Amrit Kaal Vision (MAKV) 2047: Envisions India as a global maritime hub, focusing on digitalization, automation, and sustainable practices.
The government plans to invest US$ 82 billion in port projects by 2035 and centralize the administration of minor ports through the Draft Indian Ports Bill 2021. With continued investments and policy reforms, India’s ports are poised to become even more integral to the global trade ecosystem.
Why In News
India’s strategic geographical location, coupled with its burgeoning economy, has made its ports crucial gateways for global trade, positioning the country as a key player in international maritime commerce. As trade volumes continue to rise, India’s ports are increasingly pivotal in facilitating the flow of goods between the East and West, strengthening its influence in the global supply chain.
MCQs about India’s Strategic Port Development
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Which of the following is a key component of the Sagarmala Project?
A. Promoting road transport
B. Developing space infrastructure
C. Coastal shipping
D. Enhancing agricultural production
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What percentage of India’s merchandise trade (by volume) is transported via ocean routes?
A. 60%
B. 80%
C. 90%
D. 50%
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Which of the following challenges remains despite the significant progress made through the Sagarmala Project?
A. Increased foreign investment in the agricultural sector
B. Lower global trade tariffs
C. High turnaround times at Indian ports
D. Complete removal of port-related social impacts
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What is the main goal of the “Maritime India Vision (MIV) 2030”?
A. To reduce road traffic congestion in cities
B. To increase India’s port capacity to 3,000 million tonnes per annum
C. To build more airports across the country
D. To centralize the administration of minor ports
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