Policy Brief
Ports as Economic Multipliers: Unlocking Industrial Potential, Trade Agreements and Infrastructure Linkages

By : Abhishek Agarwal

Page No: 304-323

Abstract
Ports play a transformative role as economic multipliers in the global and Indian contexts. They have evolved from passive infrastructures to active catalysts for industrial development, trade integration and regional growth. This study analyses global port performance, specialisation patterns and the strategic importance of such infrastructure for economic and territorial security, with a particular focus on India’s position in the Indian Ocean region. It explores how port-centric development generates cascading effects across logistics networks and industrial ecosystems, drawing lessons from leading port economies such as China, Singapore, the United States and the European Union. The paper examines structural constraints in India’s port economy, While ports handle 95 percent of India’s trade volume, major ports operate at less than 50 percent capacity utilisation. Low containerisation (22 percent EXIM share), and significant hinterland connectivity gaps. It recommends development of multimodal corridors and the need for a hierarchical logistics network planning inspired by international best practices. Coordinated institutional reforms, capacity building and targeted infrastructure investments are essential for India to realise its potential as a central node in global trade networks.

Author
Abhishek Agarwal is a Non-Resident Fellow, Infrastructure and Governance at NITI Aayog and a Visiting Fellow, Foreign Policy and Security Studies at Centre for Social and Economic Progress. Presently researching on India-Middle East-Europe Economic Corridor (IMEC) and India’s connectivity with the globe, Opinions expressed in this article are personal and do not reflect the views of any organisation.
 

DOI: http://doi.org/10.32381/NS.2026.09.02.9