With the government's commitment to port modernisation under initiatives like the Sagarmala Programme (under which the government has planned an investment of ₹5.48 lakh crore as part of over 800 projects), there is a clear recognition of the need for enhanced port capabilities to meet growing trade demands and improve overall economic performance.

In this respect, while most attention has been garnered by the major ports, non-major ports also play a crucial role in complementing India's maritime infrastructure. Particularly in states like Gujarat, these ports contribute to industrial growth in hinterland areas, attract private investments, and support regional development. They serve as vital links in the supply chain, facilitating trade and commerce beyond the major ports. The development of these ports not only enhances local economies but also alleviates congestion at major ports, thereby improving overall efficiency in maritime operations.

Private sector investment plays a pivotal role in modernising India's ports, significantly enhancing their capacity and operational efficiency. With the government's strategic push, there is a concerted effort to attract private investments via Public-Private Partnerships (PPPs). These partnerships have transformed the landscape of port operations in India, allowing for substantial investments that have improved infrastructure and services.

Currently, around 51% of major ports operate under PPP models, with plans to increase this share to 80% by 2030. This shift not only injects capital into port development but also brings in advanced technologies and management expertise from the private sector, which are crucial for enhancing cargo handling capacities and reducing turnaround times for vessels.

The modernisation efforts facilitated by private investments have led to significant improvements in India's port infrastructure. For instance, major ports like Jawaharlal Nehru Port Trust (JNPT) and Chennai Port have expanded their facilities through private collaboration, resulting in increased storage capacities and upgraded equipment. Furthermore, the focus on adopting smart technologies—such as automated cargo handling systems and digital port management solutions—has been driven largely by private sector participation. This technological advancement not only boosts efficiency but also aligns with global best practices, positioning India as a competitive player in international trade.

As many non-major ports approach the end of their concessionaire agreements, uncertainty looms for potential investors. The lack of clear policies regarding extensions or renewals can deter private investment, which is crucial for infrastructure upgrades and operational efficiency. Therefore, establishing transparent policies that clarify the terms of concessionaire agreements is vital for attracting and retaining investment in this sector. To foster a conducive environment for investment, it is imperative to create transparent and predictable policies regarding concessionaire agreement extensions.

A stable regulatory framework will not only ensure continued participation from the private sector but also facilitate capital inflow and technology transfer. Investors require assurance that their investments will be safeguarded by a reliable legal and regulatory environment, which will ultimately enhance operational efficiency across India's ports.

Looking at global standards, leading economies have established investor-friendly frameworks that recognise the critical role of ports in trade facilitation and economic expansion. Countries like Singapore and the Netherlands have successfully created environments that attract both domestic and international investments in their port sectors. India must emulate these best practices to enhance its attractiveness as an investment destination.

These countries have established robust legal and regulatory frameworks that protect investors while promoting efficiency and innovation in their port sectors. For example, Singapore's port authority employs a structured concession framework that includes clear terms for extensions and performance evaluations, which has attracted substantial foreign investment. Similarly, the Netherlands emphasises PPPs that ensure both accountability and collaboration between the government and private operators. By adopting similar strategies, India can create a more attractive investment climate, aligning its policies with international standards while fostering growth in its maritime infrastructure.

By learning from successful global models, India can develop policies that not only meet local needs but also align with international standards. Establishing legal and regulatory frameworks to protect investors will further bolster confidence in the sector. Moreover, ensuring policy stability beyond 2030 targets will provide long-term assurance for investors looking to commit resources towards port modernisation.

As India navigates its path towards becoming a developed nation, it is crucial to recognise the strategic importance of ports within its economic framework. By fostering an investor-friendly policy environment and addressing existing challenges in port development—especially concerning concessionaire agreements—India can unlock significant economic potential while enhancing its global competitiveness. The future of India's maritime sector hinges on these strategic decisions made today, paving the way for robust economic growth tomorrow.

This article is authored by Alwyn Didar Singh, former secretary, Government of India, New Delhi.