Ports are an important form of infrastructure in Indian economy. They play a vital role in facilitating international trade and commerce by providing an interface between the ocean transport and land-based transport. India has an extensive coastline of 7517 km (excluding Andaman and Nicobar Islands) spreading over 13 States/ UTs. It has a well-established port infrastructure covering 12 major ports and 187 minor/intermediate ports (non-major ports), spreading across 9 coastal States. These major ports come under the purview of the Central Government, while non-major ports (minor/ intermediate ports) come under the jurisdiction of the respective State Governments.

In India, the concerned authority is the Department of Shipping, in the Ministry of Shipping, Road Transport and Highways, which has been entrusted with the responsibility of formulating and implementing policies and programmes on port sector. The Department has formulated the 'National Maritime Development Programme (NMDP)' which aims to create world-class infrastructure in ports. Total investment envisaged in the programme is Rs.1,00,339 crores, out of which Rs.55,804 crores is for major ports. A total of 276 projects (involving investment of USD 12.40 billion) relating to ports sector have been identified under the programme for implementation by 2011-12. These include berth development, deepening of channels, port connectivity projects, upgradation/ modernisation of cargo handling equipment and other support services. A major portion of the investment amounting to about USD 7.67 billion is expected to come from the private sector, mainly in commercially viable projects like construction of berths and operation of berths and terminals. While, public funds will be used, where necessary, for provision of common user infrastructure facilities.

The 12 major ports serve as the gateways to India's international trade by sea, handling over 90% of foreign trade. They are spread equally on the east coast and west coast of India. Kolkata port (including Dock complex at Haldia); Paradip port; Visakhapatnam port; Chennai port; Ennore port; and Tuticorin port are on the east coast. While, Cochin port; New Mangalore port; Mormugao port; Jawaharlal Nehru port; Mumbai port; and Kandla port are on the west coast. All the major ports are administered by the 'Port Trusts' governed by the provisions of Major Port Trust Act, 1963 which are autonomous bodies, except the newly ' Ennore Port' which is run by ' Ennore Port Limited' (registered under the Companies Act, 1956).

There has been a phenomenal growth in the cargo handled at the ports, which has increased from 19.38 million tonnes (major ports) in 1950-51 to around 575 million tonnes (major and non-major ports) by 2005-06. At the beginning of the Tenth Plan, the capacity of major ports was about 344 MT. The aggregate capacity as on 31.3.2006 has been 456.20 million tonnes per annum (MTPA). The number of cargo vessels handled at ports is about 16,500 per annum. Container traffic handled at major ports is also fast increasing. About 75 per cent of the cargo handled normally at these ports is for overseas trade, of which around 42 per cent constitute exports.

The major ports have handled a total traffic of 423.41 million tonnes during the year 2005-06 and 336.71 million tonnes in the year 2006-07 for the period upto 31.12.2006. Traffic in these ports is projected to go upto 700 MT by the year 2011-12. It is, therefore, planned to augment the capacities in the major ports to about 1000 MTPA by that period so as to ensure smooth flow of traffic. This would involve capacity addition of about 545 MTPA in the ports during the six years commencing 2006-07. Besides, the average output per ship per day for all major ports taken together has improved from 9240 tonnes in 2004-05 and 9267 tonnes in 2005-06. Average turnaround time has marginally increased from 3.41 days to 3.50 days over the same period primarily on account of increase in the number of ships handled at the ports.

In order to improve efficiency, productivity and quality of services as well as to bring in competitiveness in port services, the port sector has been thrown open to private sector participation. Such private investments are mainly on the Build, Operate and Transfer (BOT) basis and include various areas of port functioning, such as leasing out existing assets of the port, construction/ creation of additional assets, construction of cargo handling berths, container terminals and warehousing facilities, installation of cargo handling equipments, construction of dry docks and ship-repair facilities, leasing of floating crafts, pilotage and captive facilities for port based industries, etc. Foreign direct investment (FDI) upto 100 per cent is permitted for construction and maintenance of ports and harbours.

Joint venture formations between a major port and a foreign port, between major port and minor port(s) without tender, as well as between major port and company(ies) following tender route are permitted by the Government. The measure is aimed at facilitating port trusts to attract new technology, introduce better managerial process, expedite implementation of schemes, foster strategic alliance with minor ports for creation of optimal port infrastructure and enhance confidence of private sector in funding ports. So far, 13 private sector projects involving an investment of Rs. 2662.2 crore and capacity addition of 47.40 MTPA have been operationalised. Twenty projects involving investment of Rs. 4907.7 crore are under various stages of evaluation and implementation.

Thus, Indian ports are indispensable in the development of country’s maritime trade and economy, owing to India’s current share in global merchandise trade at around 0.80%. They are not only considered as trade gateways, but also integral components of the global logistics and transportation chain.