GS-3, Indian Economy, Uncategorized

India set to seize big opportunity in logistic costs saving through Sagarmala

A new report by Ministry of Shipping has said that Sagarmala project can save up to Rs 35,000-40,000 crore by 2025 per annum for India by optimizing logistics flows for key commodities. The study says that augmenting operational efficiency of ports and optimizing logistics evacuation can be a big boost to Indian trade.

What else the report says?

  • Citing the example of maritime nations such as China, South Korea and Japan, the report says that ‘port-led development’ can be effectively used to save money.
  • The project can give boost to Indian trade and help seize the big opportunity of growth in Indian cargo traffic at ports which is estimated to increase to 2.5 bn MMTPA by 2025.
  • The study estimates the potential to save around Rs 35,000-40,000 crore per annum by optimizing logistics flows for key commodities by 2025.


The Sagarmala is a series of projects to leverage the country’s coastline and inland waterways to drive industrial development. Sagarmala, integrated with the development of inland waterways, is expected to reduce cost and time for transporting goods, benefiting industries and export/import trade.

The project is mammoth with 150 initiatives with a total outlay of ₹4 lakh crore, spread across four broad areas:

  • One, modernise port infrastructure, add up to six new ports and enhance capacity.
  • Two, improve port connectivity through rail corridors, freight-friendly expressways and inland waterways.
  • Three, create 14 coastal economic zones or CEZs and a special economic zone at Jawaharlal Nehru Port Trust in Mumbai with manufacturing clusters to enable port-led industrialisation.
  • Four, develop skills of fishermen and other coastal and island communities.


  • To implement this, State governments would set up State Sagarmala committees, headed by the chief minister or the minister in charge of ports.
  • At the central level, a Sagarmala Development Company (SDC) will be set upto provide equity support to assist various special purpose vehicles (SPVs) set up for various projects

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