The Indian port sector maintained a stable performance in FY2025, with cargo volumes growing by 3.3% year-on-year. Growth was primarily fueled by an 11% increase in container volumes and a 3% rise in Petroleum, Oil, and Lubricants (POL), which remains the largest cargo segment at 28%. Cumulative volumes at both major and non-major ports continued to climb in the first seven months of FY2026, registering a 4.1% growth rate.
This period of growth coincides with significant legislative changes, as Parliament passed five landmark bills to modernize maritime operations. These reforms, which include the Indian Ports Bill and the Coastal Shipping Bill, aim to replace legacy laws, boost operational efficiency, and simplify documentation for businesses. The government is also working toward giving pre-2021 terminals more freedom to set market-based tariffs to create a level playing field.
Looking ahead, overall cargo volumes are projected to grow by 3-5% in FY2026, supported by strong demand in the fertilizer and container segments. The upcoming Union Budget 2026-27 is expected to prioritize port modernization and connectivity through continued allocations to the Sagarmala project. Strategic investments in shipbuilding and repair, as well as de-congesting railway networks, remain critical to achieving India’s long-term maritime targets.