Ports Industry : An economic profile

Ports act as an economic catalyst and help in integrating smaller economies with the global the economic
system. Waterways are the most economical means of bulk transport. For industries to grow and develop in
an economy, uninterrupted power supply for manufacturing and a well-developed logistics is required.
Ports handle almost 95% of total international trade volume in India. With the Government of India’s
“Make in India” initiative for rapid economic growth, it is expected that the share of merchandize trade in
India’s GDP would increase substantially in the next 5 years. Currently, the proportion of merchandize trade
in Gross Domestic Product (GDP) of India is 27.5% and USD 623 billion in value terms (as per World
Bank- 2016) compared to 32.9% or USD 3.7 trillion worth of merchandize trade of China.

Proposed investments in major ports by 2020 are expected to total US$ 18.6 billion, while those in non-
major ports would be US$ 28.5 billion. The government is also working to float a specialised Maritime
Finance Corporation with the equity of ports and financial institutions to fund the Port projects . Gujarat
ports attract Indian and foreign firm investments of about Rs 36,000crores (US$ 4.98 billion).
India’s total external trade grew to US$ 763 billion in FY18, implying a CAGR of 5 per cent since FY09.
Merchandise exports during the year were US$ 303 billion while imports reached US$ 460 billion.In FY19
(up to November 2018) India’s merchandise trade reached US$ 563.16 billion.
Under Sagarmala Programme, 415 projects, at an estimated investment of approximately Rs.8 Lakh crore,
have been identified across port modernization & new port development, port connectivity enhancement,
port linked industrialization and coastal community development.