India's economic future hinges not only on passenger transport but equally on efficient cargo movement and multimodal logistics, a central theme at the BT Infra Summit 2026. Policymakers, industry leaders, and shipping executives emphasized that initiatives like PM Gati Shakti and Sagarmala are reshaping how goods traverse the country, laying a crucial foundation for reduced logistics costs, enhanced industrial growth, and a more competitive economy.
Sagarmala 2.0: A Broader Vision for Maritime Growth
Sagarmala 2.0, envisioned as the next phase of the Sagarmala Programme launched in 2015, proposes a significant budgetary allocation of ₹85,482 crore, alongside a total investment of ₹3.6 lakh crore. These funds are earmarked for diverse interventions across ports, inland waterways, coastal infrastructure, maritime services, coastal development, research, and institutional strengthening.
Sagar Kadu, Director of Logistics at the Ministry of Commerce and Industry, underscored Sagarmala's integration with the PM Gati Shakti National Master Plan. He described it as an overarching framework designed to unify multiple ministries, dismantle planning silos, and coordinate India's next generation of infrastructure development. Kadu clarified that Sagarmala extends far beyond mere port upgrades; it encompasses a holistic strategy to modernize ports, enhance first and last-mile connectivity, empower coastal communities, and strengthen the nation's export-import capabilities. "Sagarmala is all about liberating the port-led economy," he stated, noting that even minor improvements in port infrastructure can yield substantial gains in logistics efficiency and ease of doing business across India's 11,000 km coastline and 70 operational cargo ports.
Reducing Logistics Costs and Fostering Industrial Clusters
Captain Rahul Bhargava, CEO of Cerros Shipping, highlighted India's historically high logistics costs, which traditionally hover around 13–15% of GDP, significantly above the global benchmark of 7–8%. This challenge was the primary impetus behind the original Sagarmala initiative, which focused on coastal shipping and inland waterways for more economical cargo transport. However, Sagarmala 2.0 represents a far more ambitious undertaking, shifting towards a comprehensive "maritime economic development" approach.
Bhargava explained that the new strategy aims to establish industrial clusters around ports, rather than simply modernizing them. He drew a parallel to Maruti Suzuki's entry into the Indian market in the early 1980s, where its key contribution was not just car manufacturing but the creation of an entire ecosystem of suppliers, ancillary industries, and employment. Sagarmala 2.0 seeks to replicate this by developing industrial corridors strategically linked to ports, thereby fostering new development and employment in line with the 'Atmanirbhar Bharat' vision.
Multimodal Integration and Private Sector Role
Vishal Gupta, Executive Director at Deloitte India, emphasized that the true strength of Sagarmala lies in its end-to-end integration, moving beyond isolated infrastructure projects. "Sagarmala 2.0 is about easing the multimodal integration. It's not about infrastructure creation at port only," he clarified. Gupta cited the example of the upcoming Vadhvan Port, where deep-water facilities for larger vessels will be complemented by advanced digital customs clearance systems, including the MAITRI digital information exchange platform. This ensures that cargo, once disembarked, can seamlessly transition through an integrated network of rail corridors, highways, dedicated freight corridors, industrial corridors, and multimodal logistics parks.
Infrastructure expert Vaibhav Dange, former private secretary to the Minister for Road Transport, Highways, and Shipping, reiterated that initiatives like Bharatmala, Sagarmala, and PM Gati Shakti share a common objective: enhancing logistics efficiency. He noted that the government has successfully established the foundational physical infrastructure. Dange asserted that it is now time for the private sector to build upon these public investments by investing in logistics parks, warehouses, terminals, and operational facilities to unlock their full economic potential.
Resilience in Global Shipping
Sunil Vaswani, Executive Director of the Container Shipping Lines Association of India, reflected on the shipping industry's resilience over the past five and a half years. He described how the industry navigated the unprecedented demand surge during the COVID-19 pandemic, with Indian ports maintaining effective operations and shipping companies investing heavily in additional capacity. The industry faced further tests during the Red Sea crisis, which necessitated rerouting vessels around the Cape of Good Hope, leading to longer voyages and increased operational costs. Vaswani concluded that these past adjustments have better prepared the industry for current geopolitical tensions, allowing for quick rerouting through alternative ports like Fujairah, Sohar, and Salalah when disruptions occur around the Strait of Hormuz.