Interdependence of ports and economic development of India

Abstract

Ever si historical times, ports have attracted major trade among countries. Presently, around 95% of India’s trade by volume and 70% by value is done through maritime transport, agcording to the Ministry of Ports, Shipping and Waterways. Currently, India possesses 12 major ports and 205 minor ports and intermediary ports. The Indian Government has allowed 100% Foreign Direct Investments for harbor building and maintenance projects. The Government has also allowed 10-year tax holiday to encourage set up, support and operate India’ ports to facilitate economic development. India’s main ports have a 1534.91 million tons per annum capacity as of FY20 (www. ibef.org) In this project report, we aim to study 12 Indian ports and how different types of ports impact the economic development of surrounding areas and the country as a whole, in the context of India. To understand this impact fully, it is crucial to know the process of development of various ports to their current forms and subsequent change of economic development in surrounding area. For example, the Kolkata river-port was very important for trade in the past, but after the development of other industrial belts and nearby ports, the Kolkata port lost its glory. In this paper, we will deep dive into the types of ports based on their specializations on cargo. We will also explore the technological infrastructure used by the ports depending on the type of cargo and the category of carriers handled by the port. Additionally, we will analyze the role of transportation infrastructure like roads and railways in interconnectivity and development of industrial hubs with the ports.