India’s port sector recorded a 3.4 per cent year-on-year (YoY) growth in overall cargo volumes in fiscal 2025 (FY25), moderating from 7.5 per cent growth in fiscal 2024 (FY24). The increase was primarily driven by an 11 per cent surge in container volumes and a 3 per cent rise in petroleum product shipments.
The trend of cargo containerisation continues to gain traction, though volumes remain vulnerable to global geopolitical tensions and container availability, ICRA said in a report.
Coal cargo declined by 3 per cent YoY in FY25, as thermal power generation rose 2.8 per cent and domestic coal production increased nearly 5 per cent, reducing the need for imports, which fell by 8.6 per cent.
The government continues to push infrastructure expansion in line with Maritime India Vision 2030, with significant capital expenditure planned to enhance port capacity. While project execution is set to accelerate, rapid capacity addition may create supply-demand mismatches in certain regions, increasing competition and price pressures.
Sector consolidation has also been ongoing, with larger groups acquiring smaller or standalone port operators—a trend expected to persist.
Looking ahead, cargo volumes are projected to grow by 3 to 5 per cent YoY in fiscal 2026 (FY26), driven by continued strength in container and fertiliser shipments. The POL (petroleum, oil and lubricants) segment is expected to grow 2 to 4 per cent.
ALCHEMPro News Desk (HU)
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