India is planning more seaports than its trade and economy can afford
More ports planned in India than the country actually needs There are more ports planned in India than the country actually needs.There seems to be a herd race for developing ports. The cumulative capacity of all port projects being discussed if added could surpass current global trade.Government is certain that some will be realized and in 2020 the capacity will be 2.2 bn tones, roughly 3 times current traffic and about 25% of current global trade.Is there something seriously wrong with Indian Ports Sector? AnalysisIn financial year 2010, Indian seaports handled 850 mn tonnes of cargo, about 9% of the global trade. Shipping Ministry is planning to augment the capacity of port to 2,200 mn tonnes by 2020, which is roughly 25% of current global trade. Is it not too much knowing India's trade pattern which is dominated by raw materials, export iron ore and import coal and crude oil.Take Gujarat for example, the fastest growing industrial state in India. With well developed infrastructure it is in a better position to cater to land locked North & Central India which houses India's roughly 50% of population.It has more than 41 ports (including Kandla) and is ever ready to declare a ...
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