India's vast coastline spanning 7,500 kilometers, along with its extensive network of potentially navigable waterways totaling 14,500 kilometers, has long been recognized as a strategic asset for the country's economic development. India also has a long history of maritime trade, dating back to ancient times when ports like Lothal and Dholavira flourished. Throughout history, maritime trade had been vital to India's economic prosperity. However, after independence, India's maritime infrastructure had lagged behind, hindering its ability to leverage its coastal resources effectively. To address the previous shortcomings and harness the full potential of its maritime resources and promote port-led development across the nation, the Government of India launched the ambitious Sagarmala Programme in 2015.
Prime Minister Narendra Modi said “The country's coastal economy is being strengthened through the Sagarmala programme, wherein along with modernization of old ports, new ones are being built. We believe that our Ports are gateways to development. Therefore the government has launched the Sagarmala programme to modernize the connectivity and infrastructure on the coast.”
This is true as at its core, Sagarmala seeks to modernize ports, improve port connectivity, and optimize port efficiency, thereby boosting economic growth, creating jobs, and enhancing coastal infrastructure. The program aims to achieve this vision through four key objectives: port modernization and new port development, port connectivity enhancement, port-led industrialization, and coastal community development.
By improving logistics and reducing transit times, Sagarmala is expected to boost economic growth, facilitate trade, develop infrastructure, promote regional development, and enhance maritime security. Through initiatives such as deepening channels, upgrading transport networks, and fostering collaboration among industry players, Sagarmala seeks to unlock the economic potential of coastal regions and strengthen India's position in the global maritime arena. With over 800 projects amounting to Rs. 5.8 lakh crore, the Sagarmala Programme is poised to transform India's maritime landscape. Among these projects, 241, valued at around Rs. 1.22 lakh crore, have already been completed, showcasing significant progress.
As part of the Sagarmala initiative, six potential new port locations have been identified, including Vadhvan in Maharashtra, Sagar Island in West Bengal, Paradip Outer Harbour in Odisha, Enayam and Sirkazhi in Tamil Nadu and Belekeri in Karnataka. The Union Cabinet has already granted 'in-principle' approval for establishing a Major Port at Vadhavan in Maharashtra, with an estimated cost of Rs. 65,544 crore. The port will be developed under the 'Landlord Model', with implementation by Jawaharlal Nehru Port Trust (JNPT) and significant private sector participation through a Public-Private Partnership (PPP) mode.
Among other projects, the establishment of 14 Coastal Economic Zones (CEZs) also stands out as a key initiative for promoting port-led industrialization. These CEZs, strategically aligned with relevant ports in maritime states, will serve as hubs for manufacturing facilities, leveraging the port ecosystem to drive economic growth.
To support coastal community development, various initiatives have been undertaken, including funding select fishing harbor projects and promoting deep-sea fishing vessels and fish processing centers. Additionally, six potential new port locations have been identified, underscoring the program's commitment to expanding maritime infrastructure to accommodate future growth.
In line with Sagarmala's vision of transforming India's ports into drivers of economic development, the Ministry of Shipping and Ministry of Tourism have collaborated to introduce international cruise tourism from Indian ports. This initiative not only offers Indian tourists a unique vacation option but also attracts international cruise tourists, thereby boosting tourism revenues and promoting economic activity in coastal regions.
During 2022-23, 60 port calls were recorded at various Indian ports by international cruise liners like Mumbai, Mormugao, New Mangalore, Cochin, Chennai, and Tuticorin. Furthermore, India’s First International Cruise Vessel ‘MV EMPRESS’ the domestic sailing of the first international cruise liner, 'Costa Serena,' and World’s longest river cruise ‘MV Ganga Vilas’ was flagged off during this time.
The Sagarmala project has led to significant improvements in India's maritime infrastructure and logistics efficiency. Since 2014, the total cargo handling capacity of Indian ports has nearly doubled, reaching over 2,600 million tonnes per annum (MTPA). Cargo handling in National Waterways has experienced a staggering growth of over 1700%, reaching 126.15 million metric tonnes (MMT) in 2022-23.
As a result of these efforts, India has improved its international ranking in the shipment category, rising to 22nd place from 44th in 2014. Furthermore, key indicators of port efficiency, such as Container Dwell Time and Turn Around Time, have also shown improvement, with Container Dwell Time reduced to an average of 3 days and Turn Around Time reaching 0.9 days, surpassing several other major maritime nations. These achievements underscore the success of the Sagarmala project in enhancing India's maritime infrastructure and boosting logistics efficiency.
The Sagarmala Programme, thus, represents a paradigm shift in India's approach to maritime development. Its objectives align with India's rich maritime heritage, dating back to ancient times when Indian merchants navigated the seas for trade and exploration. As the program advances, India is poised to reclaim its historic legacy and emerge as a dominant player in the global maritime arena.
