Indian Container Cargo Defies Geopolitical Turbulence with Promising Growth
Indian container cargo is projected to grow by 8% in FY26, driven by capacity expansion and transhipment activities, despite geopolitical challenges. With container volumes reaching 380 MMT, the sector shows resilience, aided by the completion of the Western Dedicated Freight Corridor.
- Country:
- India
In a recent report by CareEdge Ratings, India's container cargo sector is anticipated to witness an 8% growth by FY26, despite ongoing geopolitical disruptions. The report forecasts container volumes to climb to approximately 380 million metric tonnes (MMT), showcasing the sector's resilience amid global challenges.
The growth trajectory will be bolstered by factors such as the expansion of capacity, increased transhipment activities, and the completion of the Western Dedicated Freight Corridor, an infrastructure project expected to significantly enhance cargo handling efficiency.
FY25 saw Indian ports manage 1,593 MMT of cargo, reflecting a 3% year-on-year increase. However, the compounded annual growth rate (CAGR) for FY23-FY25 stood at 5%, suggesting steady performance despite international trade headwinds. Notably, geographic and trade tensions, such as India's strained ties with Pakistan and US-imposed tariffs, have impacted the sector. Yet, India's container cargo achieved an 11% growth, exceeding estimates and sustaining a healthy 8% CAGR over recent years.
(With inputs from agencies.)
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