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Day 34 – Q 5. Discuss the significance of ports in India’s trade promotion.

5. Discuss the significance of ports in India’s trade promotion.  

भारत के व्यापार संवर्धन में बंदरगाहों के महत्व पर चर्चा करें।


With around 7500km long coastline and constrain of overland movement in other side, the port led trading become more significant in India’s case. India coastline supports 13 major and 200 minor ports. According to ministry of shipping, the waterway trade covers 95% of India’s total trade by volume and 70% by volume, making it way forward than other mode of transport. The ports open the India’s channel across the globe and counteract the numerous barriers it face in land based trading.


Major significance of ports in trade promotion

  1. Acts as important link to hinterland and overseas.
  2. It also facilitates goods movement through export and import thus leads to increased consumer choice and provision of goods at competitive price.
  3. Reduction in cost of transportation i.e. almost one tenth of air
  4. Enhancement to blue economy through fishing, tourism and passenger transport
  5. It is also significant for internal trade by providing livelihood to local community, multi modal connectivity by rail, roads and waterways and faster and inclusive approach in goods movement
  6. Less ecological impact

However, to completely utilise the potential of ports, the government need to overcome few challenges like;

1) Inadequate infrastructure and poor connectivity with hinterland.

2) Slow turn-around time.

3) Red-tapism and excessive interference from authority.

4) Huge environmental cost and affecting coastal population.

5) Lack of proper man power and training expertise.

6) Poor maintenance of port infrastructure.

7)Outdated navigation and IT tools.

The government, in order to overcome the challenges has taken few steps such as:
1) Sagarmala project- The objective of this project are port modernisation and new port development, port connectivity enhancement, port-linked industrialisation and coastal community development.

2) Central port authority act, 2016- to provide more autonomy to port and professionalise the governance structure.

3) Revised Model concession agreement- to provide private sector participation in port development and management.

4) Allowing 100% FDI under automatic route in port development.


The waterway is the cheapest mode of transport, harnessing it to the utmost level will gradually lower the operational cost of trade. It will make Indian trade more competitive and hence indirectly promote employment and growth

Best answer Dazy Rani

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