The Indian trade and logistics environment is going through a major transition phase, which is not only characterized by infrastructure development but also by increased government regulation. A major crackdown at Nhava Sheva Port recently resulted in the seizure of 46 containers that had mis-declared Chinese walnuts as Afghan goods to avoid payment of around ₹50 crore in duties.
During this time when the trade environment is facing these transparency issues, the maritime infrastructure is also developing, with Kakinada Seaports Limited announcing an investment of ₹200 crore to increase cargo handling capacity by 4 MTPA.
This domestic growth is matched on the international level by the signing of the India-EU Free Trade Agreement, which is expected to give Indian textiles and automobile exports zero duty access, thus substantially increasing their competitiveness in the European market. In addition, the Indian shipbuilding industry has reached a historic milestone with Cochin Shipyard’s $360 million contract to build LNG-powered ships for France’s CMA CGM, the first time that this world leader has turned away from its usual Chinese and Korean suppliers in favor of Indian know-how. In addition to this, the Adani Gangavaram Port has been awarded the status of ‘Top Custodian’ due to its efficiency.