Govt’s focus on development of ports noteworthy

Xerrxes Master, President, AMTOI

It is perhaps the first budget in the history of independent India that has focused on the logistics industry. Kudos to the government for realising the importance of the industry in the nation’s economic growth and prosperity. Developing a network of ports is essential. The Union Finance Minister highlighted the government’s focus on the sector. It was announced that ports across the

By encouraging private participation, India aims to capitalise upon the advantage of its geographical location and become a viable option for many domestic and international players

country will be moving from managing their operational services on their own to having private players enter and manage the operations. For this purpose, seven projects worth about `2,000 crore will be offered by the major ports in PPP mode in FY21-22. By encouraging private participation in the sector, India aims to capitalise upon the advantage of its geographical location and become a viable option for many domestic and international players. As exporters grapple with a global container shortage and exorbitant freight costs, the government is exploring a proposal to extend tax and other incentives to attract large players to set up shipping lines in India. The centre is focusing on improving the port infrastructure under programmes such as Sagarmala. Around 574 projects have been identified to be implemented between 2015 and 2035, covering areas such as port modernisation, port connectivity, port-led industrialisation, and coastal community development. The budgetary measures will complement the favourable policy measures recently undertaken and will help in achieving the broader goal of growth in domestic manufacturing and exports.