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India Port Infrastructure

India’s rapidly growing port infrastructure and development efforts present a significant opportunity for U.S. companies, specializing in greenfield port development, expansion and modernization of existing ports, and infrastructure upgrades to accommodate rising cargo volumes and modern logistics needs.

With India’s port infrastructure market projected to reach $8.99 billion by 2030, and the Indian government planning to invest $82 billion by 2035, the time is ripe for U.S. firms to enter or scale their presence in this critical segment. India’s ambitious target to expand port capacity from 2,600 million tons per annum (MTPA) to 10,000 MTPA by 2047 underscores the vast scope and potential opportunities.

Sagarmala Project

The Sagarmala Project is a flagship initiative by the Government of India to transform the country’s maritime sector by enhancing port-led development, modernizing logistics infrastructure, and improving connectivity between ports and hinterland areas.  The Project focuses on four main pillars:

  1. Expansion and modernization of existing ports to enhance capacity and efficiency.
  2. Improved rail, road, and inland waterway connectivity to ports, dedicated freight corridors, and multi-modal logistics hubs.
  3. Development of coastal economic zones (CEZs), Special Economic Zones (SEZs) and port-based manufacturing clusters.
  4. Fishermen skill development and coastal employment generation, and tourism development through coastal and cruise tourism.
     

High-Impact Collaboration Areas for U.S. Companies within the Sagarmala Project

  1. Port construction, dredging and engineering - Foreign firms like DP World, APM Terminals, PSA International are already active in India.
  2. Smart port technologies - Opportunities for firms offering AI, IoT, robotics, and blockchain-based logistics management systems.
  3. Green infrastructure – For shore power, energy-efficient cranes, and LNG terminals.
  4. Maritime logistics – Including fleet management, cargo shipping, and coastal ferry service.
  5. Shipbuilding and repair – India is developing shipyards in Gujarat, Tamil Nadu, and Andhra Pradesh, inviting international tech providers.

Market Entry Strategies 

  1. Build-Operate-Transfer (BOT) or Design-Build-Finance-Operate (DBFO) projects provide long-term investment opportunities.
  2. Partnering with established Indian companies.  Joint Ventures with Indian firms help navigate local regulations and market dynamics.
  3. Acquire equity in Indian port operators or logistics firms. The government allows 100% FDI under the automatic route in port infrastructure and logistics.

Success in India requires strategic planning, local partnerships, due diligence, and consistent engagement. U.S. companies are encouraged to collaborate with the U.S. Commercial Service in India, which offers tailored assistance, from identifying potential partners to understanding regulatory and operational environments.

For more information regarding upcoming events and opportunities in this sector, please reach out to your local U.S. Commercial Service office in the U.S. or infrastructure team at the U.S. Commercial Service in India.