Industry stakeholders, including port operators, logistics companies, and maritime experts, have submitted detailed proposals to the Union Finance Ministry, outlining recommendations aimed at strengthening India's crucial ports sector. The submissions, made in anticipation of the Union Budget for Fiscal Year 2026, highlight two specific areas deemed critical for enhancing operational efficiency, driving investment, and improving global competitiveness within the nation's maritime trade infrastructure. These proposals seek to inform Finance Minister Nirmala Sitharaman's budgetary allocations and policy formulations for the upcoming fiscal year.

The Indian ports sector is a cornerstone of the nation's economic growth, facilitating over 95% of India's trade by volume and 68% by value. With an existing cargo handling capacity exceeding 1,600 million tonnes per annum at major ports, and ambitious targets set under initiatives like the Sagarmala Programme, sustained development is paramount. Industry representations emphasize that strategic interventions in the upcoming budget are essential to meet projected trade growth, reduce logistics costs, and integrate Indian ports more deeply into global supply chains. The identified areas focus on overcoming infrastructure bottlenecks and incentivizing modernization.

One primary area highlighted by stakeholders is the enhancement of last-mile connectivity and multimodal integration to and from ports. Current challenges often include inadequate road and rail links that lead to congestion, increased transit times, and higher logistics costs for cargo movement. Recommendations include:

  • Increased budgetary allocation for projects under the PM Gati Shakti National Master Plan specifically targeting port-hinterland connectivity.
  • Accelerated development of dedicated freight corridors connecting major ports to industrial hubs and consumption centers.
  • Financial support for the expansion and integration of inland waterways as a cost-effective mode of cargo transport, providing seamless links to port operations. Addressing these connectivity gaps is projected to significantly reduce the average turnaround time for cargo and improve the overall efficiency of the logistics chain, directly impacting the competitiveness of Indian exports and imports.

The second critical area emphasized in the proposals centers on providing financial incentives and regulatory streamlining for modernization and capacity expansion. To attract substantial private sector investment, which is vital for upgrading port infrastructure, acquiring advanced handling equipment, and adopting sustainable technologies, stakeholders have suggested several measures:

  • Introduction of specific tax benefits, such as accelerated depreciation for investments in port automation, mechanization, and green port technologies (e.g., renewable energy integration, electric vehicle charging infrastructure within port premises).
  • Facilitating access to long-term, low-cost financing options for port development projects, possibly through dedicated infrastructure funds or interest subvention schemes.
  • Streamlining environmental clearances and approval processes for port expansion and new infrastructure projects, thereby reducing project delays and associated costs. These financial and regulatory interventions are designed to make investments in port modernization more attractive, fostering the adoption of cutting-edge technology and sustainable practices that are crucial for future growth and resilience.

Key proposals also include:

  • Support for public-private partnership (PPP) models to leverage private expertise and capital effectively.
  • Allocation for skill development programs tailored to the needs of a technologically advanced maritime sector.
  • Measures to promote coastal shipping and integrated logistics parks near port areas to further optimize cargo movement.

The Union Finance Ministry is currently in the process of conducting pre-budget consultations with various sectors. Industry representatives anticipate that a robust and forward-looking budget for FY2026 will be instrumental in further positioning India as a global maritime hub and enhancing its capabilities in international trade. The final budget document, traditionally presented in February, will reveal the government's strategic decisions for the port and shipping sectors.