India’s Maritime Turn: Reforming Ports and Policy
Explore why India must modernise its ports, train talent, and reform policy to lead in global trade, sustainability, and maritime strategy.
Introduction: India’s Maritime Reform
India, one of the world’s fastest-growing economies, stands at a turning point in its maritime journey. With a vast coastline, a strategic location bridging the East and the West, and growing international ambitions, the country’s seaports and shipping industry hold great potential. Yet, this opportunity exists alongside several challenges. As Swati Prabhu writes in “Connectivity Call for the Future: Transforming India’s Sea Ports and Maritime Industry” (ORF, July 24, 2025), “consolidating India’s maritime capacities is crucial for bolstering trade resilience, fostering economic growth, and furthering the sustainability agenda in the future.” If India is to become a true leader in global maritime trade—especially within the Global South—then sweeping reforms are needed across infrastructure, policy, and human capital.
Yet, the scale and urgency of these reforms are shaped not only by internal ambitions, but also by the wider geographic and geopolitical realities that define India’s position in the world.
Geography, Geopolitics, and a Fragile Global Order
India’s maritime power stems not only from its natural geography but also from shifting global circumstances. With a coastline that stretches nearly 7,500 kilometres, an Exclusive Economic Zone (EEZ) over two million square kilometres, and 217 ports—including 12 major ones—India is a maritime giant by any measure. The cargo handled by its ports has surged from 871.52 million tonnes in 2014–15 to 1,629.86 million tonnes in 2023–24, with a fleet of 1,530 ships supporting this growth.
However, global turbulence has put supply chains at risk. The war in Ukraine, unrest in the Middle East, and piracy threats in key waterways like the Red Sea have exposed the weaknesses in maritime trade. Swati Prabhu points out that “maritime connectivity of small island developing states (SIDS) has fallen by 9 percent over the last decade, making them 10 times less connected with the rest of the world.” These global disruptions place greater pressure on countries like India to step up and become resilient hubs of trade, transit, and sustainability.
To achieve this, India must not only respond to external shocks but also confront the internal challenges that have long held back its maritime ambitions.
Four Interlocking Hurdles to Progress
Despite its advantages, India’s maritime sector faces four main obstacles that must be urgently addressed: skills shortage, sustainability pressures, financing challenges, and outdated infrastructure.
Bridging the Skills Gap: The sector suffers from a severe lack of trained professionals, especially in areas that require advanced technology. As Prabhu highlights, “Compared to global standards, India faces a significant skills gap, especially in high-tech and specialised terminal management.” Smart Ports now demand expertise in artificial intelligence (AI), the Internet of Things (IoT), blockchain, and other digital technologies. Though some ports like Paradip and Jawaharlal Nehru have improved in efficiency, the country’s workforce still lacks the capabilities to manage next-generation ports effectively.
The Push for Sustainability: Another pressing issue is compliance with environmental standards. India must prepare for new global shipping rules. As noted, net-zero regulations for global shipping [are] to be formally adopted in October 2025, introducing stricter fuel norms and carbon pricing. The financial burden is high. Meeting these standards will cost India US $8–10 million annually by 2030,” leading to a “14 percent increase in fuel costs and 5 percent surge in freight rates. Without careful planning, India risks falling behind on both trade competitiveness and environmental commitments.
Funding the Future: While the government has big plans—“India plans to raise an investment of US$ 82 billion in port infrastructure by 2035 to leverage its maritime agenda”—many projects are still delayed or underfunded. High taxes, land acquisition problems, coastal regulation delays, and over-reliance on imported materials are just some of the bottlenecks. Even the Maritime Development Fund (MDF), with its INR 25,000 crore corpus, falls short in addressing the tax disparities faced by the shipping companies.
A Cry for Modernisation: Finally, many of India’s ports remain outdated, with weak digital infrastructure, slow processing systems, and limited automation. To compete with global ports, India must adopt a forward-looking approach that combines physical upgrades with smart technologies and integrated logistics.
Yet, modernisation alone is not enough. India’s maritime transformation demands a comprehensive strategy that addresses the sector’s broader needs and ambitions.
Why Holistic Reform is Essential
The central message of Prabhu’s article is that “consolidating India’s maritime capacities is crucial for bolstering trade resilience, fostering economic growth, and furthering the sustainability agenda in the future.” This is not just a development goal but a strategic necessity. Strong seaports are the backbone of global trade. If India wants to assert itself as a major player in international commerce, its ports must be modern, green, efficient, and digitally connected. Reform must be broad-based and future-oriented, addressing not just hardware but also human skills, environmental goals, and finance. Translating this vision into reality requires targeted action across key policy areas.
Strategic Levers for Maritime Excellence
Prabhu’s article offers a clear hypothesis: “By reforming its port management, incentivising the private sector, and fostering innovative financing pathways, India can turn the tide to become one of the prominent maritime partners in the Global South.” This is more than an ideal—it is a realistic vision supported by past experience. India has seen success with public-private partnerships (PPPs) in highways, airports, and telecoms. These models can also work in ports, provided the policy framework is stable and investment-friendly.
To make this work, India must focus on attracting top talent and upskilling the current workforce. Investing in education, training, and research in maritime technologies can boost both productivity and adaptability. Green and smart ports need a new breed of professionals—not just sailors and dock workers, but also data analysts, engineers, environmental experts, and AI specialists.
Yet, building such a skilled workforce is only part of the equation. Achieving real progress will depend equally on how investment is mobilised and channelled throughout the sector.
Investment as a Catalyst
Prabhu supports its arguments with hard numbers: “India plans to raise an investment of US$ 82 billion in port infrastructure by 2035 to leverage its maritime agenda.” Investment matters—but how and where it is deployed matters more. Already, some ports have shown impressive gains in reducing turnaround time and increasing cargo volumes. However, these improvements can only go so far without strategic investment in automation, energy efficiency, and supply chain integration. In short, investment must be smarter, not just bigger.
Nevertheless, even significant investments can fall short if the underlying system is fragmented and inefficient.
Why Current Efforts Fall Short
Despite many initiatives, Prabhu cautions that government schemes “are insufficient without deeper reform and engagement.” Fragmented policies, overlapping jurisdictions, and slow approvals continue to block meaningful change. Even well-funded schemes lose their impact when they are poorly coordinated or designed without input from those working on the ground. What is needed is not just more money or more policies—but smarter, more inclusive governance.
However, even with better governance and reform, India’s maritime ambitions face a range of persistent risks that demand attention.
Risks That Could Derail Progress
Prabhu hints at some stark warnings. India’s shipping sector faces high labour costs, expensive imported raw materials, heavy taxes, and administrative delays. These factors could frustrate even the best-laid plans. Additionally, external shocks like global economic downturns, oil price hikes, or changes in shipping regulations could set back progress. India must prepare for these risks by building systems that are agile, diversified, and less vulnerable to external shocks.
Addressing these challenges requires more than caution—it demands proactive and well-planned action across all fronts.
Recommendations: A Blueprint for Change
The way forward lies in implementing a coordinated, multi-pronged strategy. Based on Prabhu’s article and broader maritime best practices, the following actions are essential:
Reform Port Management: Adopt global best practices in port operations, focusing on transparency, accountability, and real-time data sharing. Improve planning, reduce corruption, and promote autonomy in port governance.
Train and Upskill the Workforce: Introduce specialised maritime training institutes, promote certification for digital port operations, and encourage continuous professional development. Focus on building skills for green technologies and smart logistics.
Embrace Digitisation: Develop and roll out Smart Ports Infrastructure Management Systems (SPIMS), and embed AI, IoT, and blockchain into port logistics. Real-time cargo tracking, predictive maintenance, and digital customs clearances can save time and money.
Green the Shipping Sector: Support companies in switching to clean fuels and adopting emission-reduction measures. Offer tax benefits, green credits, and innovation grants for sustainable shipping.
Create Innovative Financing Tools: Promote green bonds, infrastructure investment trusts (InvITs), and international loans to finance large projects. Bridge the gap between public funds and private capital by reducing regulatory friction.
Simplify Regulations: Streamline land acquisition and environmental clearance rules. Harmonise state and central policies to remove conflicting regulations. Use digital platforms to speed up licensing and permits.
Build Stronger Public-Private Partnerships: Invite industry players to co-create policies, ensure transparency in PPP projects, and set performance-based targets for private operators.
Strengthen Global Maritime Links: Build partnerships with other maritime powers, join regional logistics networks, and diversify trade routes through new port alliances and shipping corridors.
Conclusion
Summing up, India’s maritime sector represents more than trade—it reflects the nation’s strength, strategic vision, and readiness to lead in a rapidly changing world. With global disruptions reshaping supply chains and environmental concerns gaining urgency, India must act decisively to modernise its ports and shipping industry. This transformation requires more than just increased cargo capacity or improved rankings. It demands investment in skilled people, adoption of green and digital technologies, supportive regulatory frameworks, and long-term financial planning. A future-ready maritime ecosystem must be inclusive, resilient, and globally connected. By strengthening these foundations, India can position itself as a key player in regional stability, sustainable trade, and global economic networks. The opportunity to lead is within reach—but it requires immediate, holistic reforms across policy, infrastructure, and human capital. India’s maritime journey must now shift from ambition to execution, ensuring real impact both at home and across the wider Global South.
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The Source’s Authority and Ownership of the Article is Claimed By THE STUDY IAS BY MANIKANT SINGH
