‘India pays $75 bn to foreign shipping firms per year’: PM Modi calls for ‘Atmanirbhar shipbuilding’

Prime Minister Modi highlighted India’s significant annual expenditure of ₹6 lakh crore to foreign companies for shipping, nearly equivalent to the country’s defense budget. He attributed this dependence to the Congress governments’ neglect of domestic shipbuilding, hindering India’s potential. Modi emphasized the need for self-reliance in the shipping sector to bolster economic sovereignty and realize […]

Container freight rates are projected to remain low due to global trade uncertainties caused by US tariffs. Exporters accelerated shipments to the US before tariff deadlines, leading to an 18% increase in exports during April-August 2025. Oversupply of capacity and weakening global demand are expected to further depress sea freight rates, impacting smaller exporters significantly.

The government has granted infrastructure status to large ships, defined as commercial vessels meeting specific tonnage and ownership criteria, aiming to facilitate easier and cheaper financing for shipbuilding in India. This move, aligned with the Maritime India Vision 2030, anticipates significant investment in the shipping sector and supports the development of shipbuilding clusters.

Mercantile Ports & Logistics Ltd. has initiated legal action against a group of unidentified banks in India, alleging they failed to act fairly during refinancing negotiations. The company claims a third party is attempting to acquire its outstanding debt from the banks, potentially disrupting the refinancing process.

India is reviewing the US decision to end the Chabahar Port sanctions waiver. This waiver, expiring in 2025, allowed India access to Afghanistan and Central Asia. The US move aligns with its pressure campaign against Iran. Concerns arise that this could impact India’s connectivity plans. It may also benefit China’s Belt and Road Initiative.

The Maharashtra government is partnering with Finland to modernize Mumbai’s historic Sassoon Dock using technology-driven solutions. The project aims to address operational challenges, environmental concerns, and hygiene issues at the busy fishing harbor. The modernization will introduce modular infrastructure and advanced fishing methods to improve efficiency, sustainability, and fishermen’s earnings.

Adani Group and partners will double the Colombo terminal capacity. The project is ahead of schedule, despite losing US funding. The terminal is strategically important for India and China. The first phase is complete and the second phase will finish by late 2026. Adani withdrew a funding request from the US.

PSA International aims to broaden its footprint in India by venturing into warehousing and forging alliances for inland container management. The company is actively eyeing opportunities at the upcoming Vadhavan port in Maharashtra.

Adani Ports plans a ₹30,000 crore expansion over two years, primarily targeting Mundra, Dhamra, and Vizhinjam ports to achieve a one billion tonne cargo handling target by 2030. The investment spans ports, logistics, renewables, and marine services, with a focus on berth and terminal expansion.