Sagarmala Programme : Driving port-led growth and coastal development in India
NEW DELHI : The Sagarmala Programme, launched in 2015, is a flagship initiative of the Government of India aimed at harnessing the country’s extensive coastline to bolster economic growth, improve connectivity, and drive port-led industrialisation. With a strategic focus on modernising ports, enhancing port connectivity, and fostering industrialisation in coastal regions, this programme seeks to reduce logistics costs and make India a globally competitive player in trade and manufacturing. The initiative underscores India’s commitment to unlocking the potential of its maritime sector while addressing critical logistical inefficiencies.
The origins of the Sagarmala Programme are rooted in India’s unique geographical advantage. With a 7,517-kilometer-long coastline, 12 major ports, and over 200 minor ports, India is strategically positioned on key international maritime trade routes. However, despite its vast coastline and maritime infrastructure, India’s logistics costs historically stood at around 14% of its GDP significantly higher than developed economies, where logistics costs are typically around 8-10% of GDP. Recognising this disparity, the Sagarmala Programme was conceived to optimise maritime infrastructure and reduce logistics costs for both domestic and international trade.
The programme is guided by four key pillars. The first is port modernisation and the development of new ports to meet future trade demands and increase cargo handling capacities. Major ports, such as Jawaharlal Nehru Port Trust (JNPT) in Mumbai and Paradip Port in Odisha, have undergone significant upgrades to handle larger vessels and improve efficiency. The development of greenfield ports, such as Vadhavan Port in Maharashtra, further exemplifies this effort. The second pillar focuses on enhancing connectivity between ports and hinterlands through rail, road, and inland waterways. Initiatives like the National Waterways project and improved rail connectivity to major ports have streamlined goods movement, reducing transportation costs. The third component, port-led industrialisation, promotes the establishment of Coastal Economic Zones (CEZs) and industrial clusters near ports. These zones attract manufacturing and logistics investments, creating jobs and boosting regional economies. The fourth pillar emphasises coastal community development, with initiatives to improve livelihoods through skill development, fisheries enhancement, and tourism infrastructure.
The Sagarmala Programme has identified 802 projects worth INR 5.5 lakh crore for implementation by 2035. These projects span various sectors, including port modernisation , connectivity enhancement, industrial development, and community welfare. As of 2024, approximately 215 projects worth INR 99,173 crore have been completed, with another 216 projects, valued at INR 2.12 lakh crore, under various stages of implementation. The programme?s phased approach has delivered significant milestones, including increased port capacities and reduced cargo turnaround times at major ports like Chennai, Kandla, and Visakhapatnam.
The scope of the programme is vast, encompassing India?s entire coastline. Key locations include ports along the western coast, such as Mumbai, Mormugao, and Kandla, which are pivotal for connecting industrial hubs in Gujarat, Maharashtra, and Goa to global trade routes. On the eastern coast, Paradip, Visakhapatnam, and Chennai serve as critical nodes for trade and industrial activity in Odisha, Andhra Pradesh, Tamil Nadu, and neighboring states. The programme also includes strategic projects in the Andaman and Nicobar Islands and Lakshadweep, enhancing connectivity and fostering economic opportunities in these remote regions.
The programme’s emphasis on port modernisation has already yielded tangible results. Major ports like Jawaharlal Nehru Port Trust (JNPT), Chennai Port, and Paradip Port have undergone significant upgrades, resulting in increased cargo handling efficiency and reduced turnaround times. The development of new ports, such as the Vadhavan Port in Maharashtra and the proposed ports in Andhra Pradesh and Tamil Nadu, will further boost India’s maritime capabilities. These ports are expected to enhance cargo handling capacity by over 1,500 million metric tons per annum (MMTPA) by 2035.
Port connectivity has also seen substantial improvements under Sagarmala. Enhanced rail and road linkages to major ports, such as the Dedicated Freight Corridors (DFCs) and coastal shipping initiatives, have streamlined the movement of goods between ports and hinterland markets. Inland waterways, particularly the National Waterway-1 on the Ganga River, have been developed to provide an eco-friendly alternative for cargo transportation, reducing costs and emissions.
The industrialisation component of Sagarmala has led to the establishment of Coastal Economic Zones, designed to attract investments in manufacturing, logistics, and exports. For instance, the Gujarat International Finance Tec-City (GIFT City) and Visakhapatnam Chennai Industrial Corridor are key examples of port-linked industrial clusters driving economic growth. These zones are expected to generate millions of direct and indirect jobs, transforming coastal regions into vibrant economic hubs.
The programme’s focus on community development has also brought significant benefits to coastal populations. Initiatives like the Sagarmala Coastal Community Development Scheme have improved livelihoods through skill development programs, financial support for fisheries, and investments in tourism infrastructure. These efforts aim to create sustainable employment opportunities and improve the quality of life for communities residing along India’s coastline.
Despite its successes, the Sagarmala Programme faces several challenges. Land acquisition issues, environmental concerns, and delays in project approvals have hindered the pace of implementation. For instance, the development of greenfield ports often involves extensive environmental impact assessments and compliance with regulations, which can delay project timelines. Additionally, securing private sector investments for certain projects remains a challenge, necessitating stronger public-private partnerships.
The impact of the Sagarmala Programme on India’s economy is profound. By reducing logistics costs, the programme enhances the competitiveness of Indian goods in global markets, supporting the government’s vision of making India a USD 5 trillion economy. The modernisation of ports and improved connectivity have also positioned India as a preferred destination for manufacturing and exports, aligning with the goals of the Make in India initiative. The programme is estimated to save up to INR 40,000 crore annually in logistics costs while boosting EXIM trade and creating over 40 lakh direct and indirect jobs.
Looking ahead, the Sagarmala Programme is poised to further revolutionise India’s maritime and logistics landscape. Future plans include the completion of identified projects by 2035, with a focus on sustainable and smart technologies. Green initiatives, such as the adoption of renewable energy at ports and the development of electric cargo-handling equipment, will ensure environmental sustainability. Additionally, the integration of advanced digital solutions, such as blockchain-based cargo tracking and automated terminal operations, will enhance the efficiency and transparency of port operations.