We need corporate nationalism for port infrastructure
A sector’s contribution is traditionally assessed through economic metrics. However, in today’s complex geopolitical landscape, the significance of port infrastructure transcends these measures. This sector holds strategic importance for India’s economic vitality, geopolitical influence and national security.
To secure India’s future, bridging its port and maritime capabilities gap vis-à-vis China is a geo-strategic imperative. This is why we should embrace corporate nationalism in this sector. On GDP per capita, India still lags most countries and the world average.
With just 4% of India’s working-age population earning over $10,000 annually, we cannot rely on domestic consumption to escape a middle-income trap. We should pivot towards exports as our primary driver of economic growth, aiming for exports to contribute 30-35% of GDP within the next 5-10 years. We must work on both price and non-price factors impacting export competitiveness, including integration into global value chains through world-class port infrastructure development.
China’s economic growth was driven by manufacturing, but its export dominance relies heavily on its extensive port infrastructure. Seven of the world’s top ten ports are in China, with no Indian port in the top 25. In 2021, China handled 1,270% more cargo traffic than India, with 95% of its trade passing through ports.
China has made 92 port-related investments across 56 countries, establishing a strong maritime network. Notably, 10 of these investments have naval potential, strategically located in countries around India: Pakistan, Sri Lanka and Myanmar. As Xi Jinping once said, “To get rich, we must first build ports." India lags other big exporting nations on port infrastructure for
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