Indian Ports Act (2025): Reforming India’s Port Governance and Maritime Competitiveness

Policy Update
Nayanshi Jain

Introduction

India’s Ports as Strategic Economic Infrastructure

India’s ports are critical to its trade competitiveness, handling nearly 95% of the country’s trade by volume and around 70% by value.  Beyond facilitating imports and exports, port efficiency affects the cost, speed and reliability of entire supply chains, influencing India’s ability to integrate into global value chains.

This makes port performance a broader logistics issue. Indicators such as vessel turnaround time, cargo dwell time, customs clearance and hinterland connectivity determine how efficiently goods move from producers to global markets. India’s 38th position in the World Bank’s 2023 Logistics Performance Index reflects considerable progress, while also underscoring the need to address remaining logistics bottlenecks.

Consequently, India’s maritime policy is increasingly moving beyond standalone port development towards an integrated logistics ecosystem, supported by initiatives such as Sagarmala, PM Gati Shakti and the National Logistics Policy. The policy objective is no longer simply to create port capacity, but to ensure that ports function as efficient nodes within interconnected road, rail, inland-waterway and industrial networks.

Why Port Governance Required Reform

The Indian Ports Act, 1908 was framed for a substantially different maritime economy. Over the past century, India’s port sector has evolved to include major and non-major ports, private terminal operators, PPPs, digital systems and increasingly complex environmental and maritime-security requirements.

Governance has also remained institutionally dispersed, with major ports under the Union government and non-major ports primarily administered by States. As port competitiveness increasingly depends on infrastructure and services extending beyond port boundaries, effective Centre–State coordination has become essential.

The regulatory agenda has consequently expanded from basic port administration to integrated development, digitalisation, maritime safety, environmental protection, private investment, data governance and ease of doing business. The Indian Ports Act, 2025 responds to this changing context by replacing the 1908 framework with a more comprehensive institutional architecture.

The Central Argument

The Indian Ports Act, 2025, enacted in August 2025 and brought into force from 1 April 2026, marks a shift from a predominantly regulatory framework towards more coordinated, integrated and data-enabled port governance.

However, the significance of the reform lies not merely in replacing an outdated statute. India has already recorded improvements in port efficiency; the policy challenge now is to convert these gains into lower end-to-end logistics costs and stronger trade competitiveness.

The Act therefore provides an important institutional foundation, but its outcomes will depend on implementation capacity, Centre–State coordination, regulatory predictability, multimodal connectivity and effective digital integration.

Background

Changing Competitive Landscape

India’s maritime challenge is increasingly international rather than merely domestic.

Major regional hubs such as Colombo, Singapore, Port Klang and Jebel Ali have established strong positions in trans-shipment and regional maritime logistics.

India’s large coastline and growing trade volumes have not translated proportionately into a comparable role in global trans-shipment. Earlier Ministry analysis found that a substantial share of India’s trans-shipment cargo was handled at foreign ports, creating additional cost and dependence for Indian trade. 

This has encouraged policy efforts to develop dedicated trans-shipment capacity, including the proposed International Container Trans-shipment Port at Galathea Bay in the Great Nicobar Islands. 

The strategic objective should therefore extend beyond making Indian ports efficient gateways. India needs ports that can anchor regional logistics, manufacturing and maritime-service ecosystems, attracting trans-shipment, warehousing, processing, ship repair and other value-added activities.

This distinction is important: port competitiveness is not only about handling more cargo; it is about capturing a larger share of the economic value generated around maritime trade.

The Policy Ecosystem Surrounding the Act

The Indian Ports Act, 2025 forms part of a broader maritime-policy architecture, rather than functioning as an isolated legislative reform.

The Indian Ports Act, 2025 is therefore best viewed as a governance layer within this larger transition. Its significance will depend on whether it can effectively connect the institutional reforms already underway with India’s wider objectives of lowering logistics costs, strengthening coastal and trans-shipment networks, attracting investment and positioning ports as engines of industrial growth.

Functioning

The Indian Ports Act, 2025, which came into force on 1 April 2026, replaces the Indian Ports Act, 1908 with a framework designed around contemporary requirements of port development, safety, environmental management and maritime governance. Its significance lies less in any single provision than in its attempt to create a more coordinated institutional architecture for India’s diverse port system.

Consolidating the Legal Framework

Repeals and replaces the Indian Ports Act, 1908, bringing port regulation under a single contemporary legislative framework.

Expands the scope of port governance beyond basic administration to cover:

• port development and planning;
• navigation and maritime safety;
• pollution prevention;
• disaster and emergency management;
• maritime security; and
• compliance with international maritime obligations.

The broader approach reflects a shift from regulating ports as isolated facilities to governing them as components of a wider maritime system.

Strengthening State Maritime Boards

The Act provides for State Maritime Boards to manage and regulate non-major ports within their respective jurisdictions.

This is particularly significant because India’s port system is institutionally divided between Union-administered major ports and State-administered non-major ports.

State Maritime Boards are intended to provide a more structured institutional mechanism for:

• port planning and development;
• regulation of non-major ports;
• infrastructure coordination; and
• implementation of national maritime objectives at the State level.

Maritime State Development Council

The Act strengthens the role of the Maritime State Development Council (MSDC) as a platform for Centre-State coordination.

Its functions include facilitating:

• integrated planning and development of ports;
• formulation of policies for the port sector;
• coordination between the Union and States; and
• resolution of issues affecting port development.

The Council is particularly important because port competitiveness depends on infrastructure and regulatory decisions that extend beyond individual port authorities.

Integrated Port Development

The Act places greater emphasis on planned and integrated port development rather than isolated capacity expansion.

This involves linking port planning with:

• coastal and hinterland infrastructure;
• road and rail connectivity;
• inland waterways;
• logistics networks; and
• industrial development.

This complements the multimodal approach under PM Gati Shakti, which seeks to coordinate infrastructure planning across different transport modes.

Digitalisation and the Maritime Single Window

A significant modernisation element is the Act’s emphasis on digital port processes and maritime data systems, including the Maritime Single Window.

The objective is to:

• consolidate information submitted by ships and other maritime stakeholders;
• reduce repetitive documentation;
• facilitate information exchange between authorities;
• improve transparency; and
• reduce transaction time and administrative costs.

The Economic Survey 2025-26 identifies the Maritime Single Window among measures intended to streamline port processes, reduce logistics costs and strengthen India’s maritime competitiveness.

Safety, Security and Environmental Governance

The Act broadens port governance to incorporate safety, security and environmental sustainability alongside economic efficiency.

Key areas include:

• Navigation safety: regulatory provisions concerning safe navigation and port operations.

• Pollution prevention: measures for preventing and managing pollution from port and maritime activities.

• Disaster and emergency management: stronger institutional mechanisms for responding to maritime emergencies.

• Maritime security: provisions addressing security-related risks within port jurisdictions.

• International obligations: alignment of port governance with India’s obligations under relevant international maritime conventions.

Data-Driven Port Governance

The Act gives greater importance to maritime data collection, management and sharing, creating the basis for more evidence-based port policy.

This can enable:

• standardised port data across jurisdictions;
• comparable performance indicators;
• better identification of operational bottlenecks;
• evidence-based infrastructure planning; and
• more systematic monitoring of port performance.

The potential policy shift is from input-based governance-measuring capacity created or expenditure incurred to outcome-based governance, where performance is assessed through indicators such as turnaround time, cargo dwell time, connectivity, safety and environmental performance.

However, data availability alone does not guarantee better governance. Its value depends on standardisation, transparency, interoperability and the institutional capacity to use data for decision-making.

Performance

India’s Port Performance: Evidence of Improvement

India’s port sector has recorded measurable gains in capacity and operational efficiency in recent years.

• Cargo throughput: Major and non-major ports handled approximately 1,602.56 million tonnes (MT) in 2024-25, while India’s 12 major ports alone handled 854.86 MT. This indicates sustained growth in maritime cargo and increasing utilisation of India’s port network.

• Turnaround efficiency: Average vessel turnaround time at major ports declined from 52.87 hours in 2021-22 to 49.47 hours in 2024-25. Container turnaround time also improved from 32.39 hours to 30.08 hours over the same period. The Economic Survey 2025-26 notes that Indian ports are approaching global benchmarks on operational efficiency.

• Global performance: India’s improving port performance was reflected in the World Bank–S&P Global Container Port Performance Index (CPPI) 2023, with two Indian ports, Visakhapatnam and Mundra-ranking among the global top 30 and seven others entering the top 100.

Assessment: These indicators suggest that the policy focus on modernisation, mechanisation, digitalisation and operational reforms is yielding results. However, port-level efficiency should not be equated with economy-wide logistics competitiveness. The more important question is whether these gains reduce the total time and cost of moving goods from Indian production centres to global markets.

Private Participation and PPPs: A Shift in the Operating Model

• Private investment has become an increasingly important component of India’s port modernisation strategy.

• PPP projects awarded at major ports increased from 37 in FY2015 to 87 in FY2025.

• Their total value rose from approximately ₹16,180 crore to ₹61,029 crore.

• As of FY2025, 57 operational PPP projects, representing about ₹42,235 crore in investment, had contributed approximately 660 MTPA of capacity.

This reflects the gradual consolidation of a landlord-port model, in which public authorities retain ownership and core regulatory functions while private operators participate in terminal development and operations.

Policy assessment: PPPs can improve capital mobilisation and operational efficiency, but their success depends on predictable concession frameworks, competitive bidding, balanced risk allocation and effective regulation. Private participation therefore needs to complement—not substitute for—strong public-sector governance.

From Governance Reform to Competitiveness

The potential impact of the Indian Ports Act, 2025 can be understood through a governance-to-competitiveness chain. Clearer Centre–State roles and stronger institutional coordination can reduce regulatory fragmentation, improve predictability and facilitate more coherent port development.

Digital governance, maritime data sharing and the Maritime Single Window can reduce procedural duplication, improve transparency and lower transaction costs. These improvements can enhance port-level efficiency, reduce delays and make cargo movement more reliable, thereby supporting India’s trade competitiveness.

However, port efficiency alone cannot determine end-to-end logistics costs. Road, rail and inland-waterway connectivity, customs, warehousing and first- and last-mile evacuation also influence supply-chain performance. The Act can therefore improve the institutional and regulatory conditions within ports, but its wider competitiveness impact will depend on how these reforms interact with the broader logistics ecosystem.

Critical Gaps and Challenges

• Institutional capacity: The effectiveness of the Act may be constrained by differences in the technical expertise, financial resources and administrative capabilities of State Maritime Boards. New responsibilities involving port economics, environmental regulation, maritime safety, PPP management and digital systems could place significant demands on existing institutions. Inadequate specialised personnel may limit the quality and speed of regulatory and operational decisions.

• Centre–State coordination: Port development often involves multiple Union, State and local agencies, creating overlapping jurisdictions and procedural delays. Issues related to land, environmental approvals, infrastructure planning and regulatory clearances can slow project execution. The challenge lies in ensuring that coordination mechanisms produce timely decisions rather than merely adding another consultative layer.

• Hinterland connectivity: Port efficiency can be undermined by weaknesses beyond the port boundary. Inadequate rail and road capacity, limited inland-waterway integration, congestion and inefficient first- and last-mile evacuation can increase cargo dwell time and logistics costs. These gaps also restrict the effectiveness of coastal shipping and multimodal transport.

• Transshipment dependence: India’s growing cargo volumes have not yet translated into equivalent control over transshipment activity. A substantial share of containerised cargo has historically been routed through foreign hubs such as Colombo, Singapore and Jebel Ali. This creates additional handling, time and cost while limiting India’s ability to capture related maritime services and economic value.

• Uneven port performance: National averages can conceal substantial differences across individual ports. Large commercial ports are generally better placed to attract investment, technology and specialised operators, whereas smaller and non-major ports may face limitations in infrastructure, technology and market access. Such disparities can result in regional concentration and uneven benefits from port-led development.

• Environmental and climate risks: Port expansion can place pressure on coastal ecosystems, marine habitats and local communities through dredging, pollution and construction activity. Ports are also exposed to extreme weather, sea-level rise and coastal flooding. These risks create long-term challenges for the sustainability, resilience and operational continuity of port infrastructure.

Way Forward

The Indian Ports Act, 2025 provides the institutional foundation for modern port governance. The next phase should focus on implementation, measurable outcomes and integration across the maritime ecosystem. The objective should be to move beyond port modernisation towards a globally competitive, efficient and sustainable maritime economy.

Shift from Port-Centric to Logistics-Centric Planning

Port planning should be integrated with railways, highways, inland waterways, logistics parks and industrial corridors under PM Gati Shakti. Investment priorities should address first- and last-mile bottlenecks and improve cargo evacuation. Port performance should be assessed through end-to-end cargo time, reliability and logistics cost, rather than merely through capacity creation or vessel-handling efficiency.

Build Capable and Accountable State Maritime Boards

State Maritime Boards should be strengthened through common national benchmarks, specialised expertise in port economics, PPPs, maritime regulation and environmental management, and adequate financial and institutional autonomy. Transparent reporting and accountability should accompany this autonomy. The Maritime State Development Council should facilitate time-bound resolution of Centre–State bottlenecks and support more consistent port governance across States.

Institutionalise Performance-Based Port Governance

The Act’s emphasis on maritime data should be converted into a standardised national port-performance dashboard. Indicators should include vessel turnaround, cargo dwell time, berth productivity, container evacuation, digital clearance, capacity utilisation, logistics cost and environmental performance. Such benchmarking would improve transparency, identify persistent bottlenecks and shift governance from measuring inputs to evaluating time, cost, reliability and sustainability.

Position India as a Transshipment and Maritime Services Hub

India should develop transshipment infrastructure alongside competitive tariffs, adequate draft, reliable feeder networks and strong hinterland connectivity. Port-led development should also support ship repair, bunkering, maritime finance and insurance, logistics, warehousing, shipbuilding and ship recycling. Developing these interconnected services would help Indian ports capture greater maritime value and evolve into broader maritime economic clusters.

Make Green and Climate-Resilient Ports the Next Frontier

Port competitiveness should increasingly be linked to environmental sustainability and climate resilience. Priorities should include electrification, shore-side power, cleaner fuels and equipment, renewable energy, efficient waste management and resilient coastal infrastructure. The Harit Sagar Guidelines and Green Tug Transition Programme provide an existing policy foundation. Decarbonisation should be treated as an investment in long-term operational efficiency and resilience.

Shift from Legislative Consolidation to Implementation Discipline

The success of the Act will depend on its implementation through time-bound rules, clearly defined institutional responsibilities, predictable PPP and concession frameworks, efficient dispute resolution and interoperable digital systems. Independent and periodic evaluation should assess both port-level and regulatory performance. The central test should be whether the new framework delivers lower logistics costs, faster cargo movement, stronger connectivity and more sustainable operations.

The next phase of India’s port reform should therefore move from legislative consolidation to implementation discipline. The Indian Ports Act, 2025 has created a contemporary governance framework, but its success should ultimately be judged by outcomes: lower end-to-end logistics costs, faster and more reliable cargo movement, stronger domestic and international connectivity, greater private investment, and more sustainable port operations. India’s ambition should not be merely to build globally efficient ports, but to build a globally competitive maritime ecosystem in which ports serve as gateways to trade, logistics, manufacturing and maritime services.

References 

Government of India. (2021). The Major Port Authorities Act, 2021. India Code. https://www.indiacode.nic.in/handle/123456789/16956

Government of India. (2025). The Indian Ports Act, 2025. India Code. https://www.indiacode.nic.in/handle/123456789/22358

Ministry of Finance. (2026a). Economic Survey 2025–26. Government of India. https://www.indiabudget.gov.in/economicsurvey/

Ministry of Finance. (2026b). Investment and infrastructure: Strengthening connectivity, capacity and competitiveness. In Economic Survey 2025–26 (Chapter 9). Government of India. https://www.indiabudget.gov.in/economicsurvey/doc/eschapter/echap09.pdf

Ministry of Ports, Shipping and Waterways. (2021). Maritime India Vision 2030. Government of India. https://shipmin.gov.in/en/content/maritime-india-summit-2021-maritime-india-vision-2030-0

Ministry of Ports, Shipping and Waterways. (2023). Harit Sagar: Green Port Guidelines. Government of India. https://shipmin.gov.in/en/content/harit-sagar-green-port-guidelines-may-2023

Ministry of Ports, Shipping and Waterways. (2025a). Maritime Amrit Kaal Vision 2047. Government of India. https://shipmin.gov.in/en/content/maritime-amrit-kaal-vision-2047

Ministry of Ports, Shipping and Waterways. (2025b). Update on Indian ports sector up to 31.03.2025. Government of India. https://shipmin.gov.in/sites/default/files/Update%20on%20Indian%20Ports%20Sector%20upto%2031.03.2025_0.pdf

Ministry of Ports, Shipping and Waterways. (2026). Annual report 2025–26. Government of India. https://shipmin.gov.in/sites/default/files/Annual%20Report%202025-26%20english.pdf

Ministry of Ports, Shipping and Waterways. (2026, February 26). India set to become a global maritime powerhouse; among top shipping centres by 2047: MoS Shantanu Thakur. Press Information Bureau, Government of India. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2233239

World Bank. (2023). Connecting to compete 2023: Trade logistics in an uncertain global economy—The Logistics Performance Index and its indicators. World Bank Group. https://documents1.worldbank.org/curated/en/099042123145531599/pdf/P17146804a6a570ac0a4f80895e320dda1e.pdf

World Bank. (2025). The Container Port Performance Index 2020 to 2024: Trends and lessons learned. World Bank Group. https://documents1.worldbank.org/curated/en/099091925073051415/pdf/P509479-9781ba16-3dbc-4064-9d8f-8eaf9951e09d.pdf

About the Contributor

Nayanshi is a Research and Editorial Intern at IMPRI and a student of Economics and Political Science at St. Stephen’s College, Delhi. Her research interests lie in international political economy, monetary and financial systems, public policy, developmental economics, welfare economics, behavioural economics and sustainable development.

Acknowledgement :The author extends her sincerest gratitude to the IMPRI team for their expert guidance and constructive feedback throughout the process. 

Reviewers: Madhuritha D, Gayathry Sanjay Balaram

Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.

Read more at IMPRI:

National Mission for Sustainable Agriculture (NMSA): Assessing Climate-Resilient Farming and Sustainable Agricultural Practices in India (2014–2026)

From Hackathons to Impact – Assessing the IndiaAI Application Development Initiative (2024)