How Indian Ports Are Poised to Dominate Global Trade Routes

A significant milestone in this journey is the India-UAE Virtual Trade Corridor deal, signed during the visit of Abu Dhabi Crown Prince Sheikh Khaled Bin Mohamed Bin Zayed Al Nahyan on September 10. This agreement is seen as a vital step toward establishing the India-Middle East-Europe Economic Corridor (IMEC). It is expected to streamline administrative processes, cut logistics and transportation costs, and enhance the ease of doing business.

Indian ports are positioned to play a pivotal role in this ambitious IMEC project, which is central to India’s goal of becoming a $5 trillion economy. The corridor envisions a sea link between India and the UAE’s Jebel Ali port, from where goods will be transported by rail to Israel’s Haifa port via Saudi Arabia and Jordan, and then shipped to Europe.

India-UAE Strengthen Ties with Virtual Trade Corridor and Critical Minerals Partnership

Industry experts predict that Indian seafarers, who currently make up 10% of the global maritime workforce, could account for 20% within the next decade. With over 90% of global trade dependent on shipping, the role of Indian ports and sailors is set to expand significantly, with many large international vessels already relying heavily on Indian crew.

Karan Adani, Managing Director of Adani Ports and Special Economic Zone (APSEZ), is optimistic about India’s maritime potential. He believes that by 2030, India could handle a volume of 100 crore tonnes and become a regional hub by developing reliable supply chains for neighboring countries.

A report by McKinsey & Company projects that the Indian maritime sector, currently valued at $130 billion, will grow to $300 billion by 2025. Of this, the shipping industry is expected to contribute $95 billion, while ports are projected to generate $60 billion. Sajjan Jindal, Chairman of JSW Group, has echoed this sentiment, drawing parallels to Singapore’s ports and envisioning India’s potential to serve not only its own cargo but also that of neighboring nations.

India’s inclusion on the International Maritime Organization’s ‘whitelist’ further strengthens its position. This status ensures proper licensing systems, training facilities, and port state control, boosting demand for Indian maritime services.

In FY24, India’s major ports handled 818 million tonnes (MT) of cargo, a 4.45% increase from the previous year’s 784 MT, representing a significant portion of the country’s merchandise exports and imports.As the maritime sector continues to grow, it faces a range of challenges and opportunities, from green energy targets to geopolitical tensions and supply chain disruptions. With a coastline of nearly 7,500 km along the strategic Europe-Asia route, India is well-positioned to play a crucial role in the global maritime trade network, unlocking vast economic growth potential.

Work is already underway to meet the goals set out in the Maritime India Vision 2030 and to progress toward the Maritime Amrit Kaal Vision 2047.