India is on track to become the world's third-largest economy by 2030–31 according to S&P Global India, with an expected annual growth rate of 6.7%.

The country has emerged as the fastest-growing major economy, achieving a GDP growth rate of 8.2% in the financial year 2024, exceeding the government's previous estimate of 7.3%.

“India's medium-term prospects are healthy and filled with opportunities in multiple sectors, including trade, agriculture, and AI, likely structural reforms, and growing energy demands. India is poised for growth, and with a young and dynamic workforce, it is well-positioned to shape the global economic landscape,” said head of S&P Global India Leadership Council, and chief data officer for S&P Global Market Intelligence, Abhishek Tomar.

Furthermore, the research highlighted that India needs to enhance its infrastructure and geopolitical strategies, especially concerning its vast coastline, to fully leverage trade opportunities, Business Standard reports.

With nearly 90% of India's trade conducted via sea, strong port infrastructure is essential to handle growing exports and bulk commodity imports.

According to the World Bank and S&P Global's Container Port Performance Index 2023, only three Indian ports made it into the top 50. 

In addition, there was a significant performance disparity between public and private ports; the largest government-owned port, the Jawaharlal Nehru Port Trust (JNPT), ranked 96th globally, while the privately operated Mundra Port Terminal in Gujarat secured 27th position.

Until a decade ago, government-owned ports in India handled around 75% of the country's container volumes, with JNPT and Chennai Port at the forefront. 

However, cargo volumes have increasingly migrated to private ports due to their market-oriented approach in a competitive landscape. The research noted that bureaucratic obstacles related to pricing and infrastructure investment have diminished the appeal of government-owned ports.

According to S&P Global's Journal of Commerce, privately operated ports in India accounted for 47% of total cargo in FY24, highlighting the growth of Adani Ports. The Adani-run Mundra Port handled 15.6% more volume than JNPT and experienced double the growth rate in FY24.

“India needs more ports. With big investments pouring into the sector, a balance needs to be struck while we discuss public and private ports,” said Rahul Kapoor, vice president, global head of shipping analytics and research.