Assess how far port-led development under Maritime India Vision 2030 has made Indian logistics more competitive. What structural gaps remain in shipbuilding?

Nearly 95% of India's trade by volume and about 70% by value moves by sea [1]. This means port efficiency directly shapes logistics costs. Maritime India Vision (MIV) 2030 was launched in 2021 with 150+ initiatives and ₹3–3.5 lakh crore of planned investment [1]. It has made ports much more efficient. Gains in overall logistics competitiveness, however, remain only partial.

Gains in competitiveness

• Faster ports: average vessel turnaround time fell from 93 to 48 hours. The operating ratio of major ports improved from 73% to 43% [1].
• Capacity: port capacity almost doubled, from 1,400 to 2,762 MMTPA. Cargo handled rose from 972 to 1,594 MMT [1].
• Cheaper modes: inland waterway cargo rose from 18 to 146 MMT and operational waterways from 3 to 29. Coastal cargo nearly doubled, from 87 to 165 MMT [1].
• Financial health: the net surplus of major ports rose from ₹1,026 crore to ₹9,352 crore, which funds reinvestment [1].

Limits: the hinterland problem

• Underused capacity: capacity utilisation fell from about 69% to about 58% (from [1]). Ports are no longer the bottleneck. The constraint is now how much cargo reaches them.
• Last-mile links: a parliamentary Standing Committee (2022) found that only 56 of 208 Sagarmala port-connectivity projects were complete. Only 9 of 33 port-led industrialisation projects were complete [2].
• Execution: port modernisation projects had run ₹20,000 crore over cost, and the all-weather Vadhavan port had made no progress [2].

Structural gaps in shipbuilding

• Fleet lags trade: the gross tonnage of Indian-flagged ships grew only about 35% (10 to 13.52 MGT), while cargo grew about 64% [1]. More of India's trade therefore depends on foreign ships.
• Cost disadvantage: the revamped SBFAS (₹24,736 crore) exists to offset the higher cost of building ships in India [1].
• Long-term finance: the Maritime Development Fund (₹25,000 crore) is meant to fill a gap in long-tenure lending for shipping and shipbuilding [1].
• Yard capacity: SbDS (₹19,989 crore) is still at the stage of creating greenfield clusters and expanding yards [1].
• Design and R&D: the Indian Ship Technology Centre at Visakhapatnam (₹305 crore) is only now being set up [1].

Port-led development has largely fixed India's quayside problems: ports are faster, leaner and profitable. Logistics competitiveness has therefore improved substantially but not completely. The way forward is to finish Sagarmala connectivity projects and plan rail, road and waterway links together. The ₹69,725 crore shipbuilding package should be judged by the tonnage it delivers. That would match Maritime Amrit Kaal Vision 2047's aim of making India a top shipbuilding nation [1].