India’s maritime and logistics sector is at a crossroads—balancing between massive growth opportunities and operational challenges. While the government is pushing for self-reliance in shipping and new port development, the sector is simultaneously grappling with severe disruptions at the country’s busiest port.
Maritime and Shipping Developments
India continues to spend heavily on foreign shipping services, with annual outflows reaching ₹6 lakh crore. Prime Minister Narendra Modi has called for greater self-reliance in the maritime sector to reduce dependence on global carriers.
Adding momentum, the government has announced plans for a new major port at Bahuda, Odisha, with an investment of ₹215 billion. This port is expected to strengthen India’s eastern maritime corridor, reduce logistics costs, and boost trade capacity.
Logistics Challenges at JNPA
India’s busiest container gateway, Jawaharlal Nehru Port Authority (JNPA), is facing unprecedented disruption following a police-imposed traffic plan.
The restrictions limit cargo movement to just six hours per day (midnight to 6:00 AM), causing chaos in container freight operations. The Container Freight Stations Association of India (CFSAI) has sounded the alarm, warning that if left unaddressed, the disruption could cripple the supply chain.
Key Challenges at JNPA
| Challenge | Description |
|---|---|
| Restricted Cargo Movement | Traffic plan allows only six hours (12:00 AM – 6:00 AM) for cargo movement, severely limiting port throughput. |
| Import Backlogs | Containers pending delivery for over a week, creating bottlenecks and operational delays. |
| Overflowing Terminal Yards | Storage areas at full capacity, increasing risk of pile-ups and congestion. |
| Rising Costs | CFS operators incurring penalties and ground rent despite disruption being beyond their control. |
| Supply Chain Risks | Prolonged restrictions may cause a collapse of the JNPA supply chain, affecting critical industries. |
| Economic Implications | Manufacturing, retail, and pharmaceuticals sectors face potential supply shocks. |
CFSAI has urged immediate government intervention to revoke restrictions and restore normal cargo operations at JNPA.
Strategic Growth in Logistics
Despite these operational setbacks, India’s logistics sector continues to show strong fundamentals. In H1 2025, the logistics and industrial real estate sector recorded double-digit growth.
States like Goa are actively offering incentives for warehousing and logistics investment, boosting the creation of modern storage infrastructure.
International Relations and Trade
India’s global logistics strategy has hit a hurdle with the U.S. revoking Chabahar sanctions waivers, jeopardizing India’s investments in Iran’s key port project. This development could alter India’s connectivity plans for Central Asia.
Recognition in Maritime Excellence
Amidst challenges, there are success stories: the New Mangalore Port Authority was recently recognized at national awards for excellence in the ports and shipping sector, highlighting the strong performance of some Indian ports.
Conclusion
India’s maritime and logistics ecosystem is in a phase of contrasting realities. On one hand, the government is advancing strategic infrastructure investments and encouraging self-reliance in shipping. On the other, logistical bottlenecks at JNPA and external geopolitical setbacks threaten to undermine growth momentum.
Resolving immediate disruptions while continuing to expand infrastructure and strengthen international trade relations will be critical for ensuring that India’s logistics and maritime sector remains a driver of economic growth.
Glottis Limited 
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