MSMEs Amid Maritime Milestones

MSMEs Amid Maritime Milestones

Fiscal year 2024-25 has exhibited India’s maritime status as an emerging powerhouse. The Major Ports achieved unprecedented highs in cargo throughput, operational efficiency, and industrial development. The Press Information Bureau (PIB) has released the data showing an increase in cargo handled by Major Ports. It has risen from 819 million tonnes in FY 2023-24 to approximately 855 million tonnes in FY 2024-25, contributing a healthy annual growth of 4.3%. The numbers mark more than just the nation's logistics and trade ecosystem, they have profound implications (both opportunities and challenges) for India’s Micro, Small, and Medium Enterprises (MSMEs).

Cargo Handled by Major Ports (in million tonnes)
900 |                                      
    |                                      
    |                                      
    |                                      
855 |        ██████████████████████████████
    |                                      
    |                                      
    |                                      
819 |        ██████████████████████████    
    |                                      
    +--------------------------------------
           FY 2023-24       FY 2024-25

Navigating opportunities for an Efficient Trade Ecosystem for MSMEs

• Reduced Bottlenecks- High logistics costs and long turnaround times has been a major concern for the MSMEs historically. The Average Turnaround Time (TRT) fell to 49.5 hours in FY 2024-2025, nearly half of what it was a decade ago. Moreover, the Pre-Berthing Detention Time dropped by 36% and Output per Ship Berth Day improved significantly. These factors can cumulatively contribute to faster movement of goods, reduced detention charges and better supply chain predictability for MSMEs significantly relying on import-export operations.

• Export-Oriented MSMEs- A 10% rise in container throughput (hitting 193.5 million tonnes) and record performance by Jawaharlal Nehru Port Authority (JNPA), 13% growth in container, will benefit export-oriented MSMEs by enhancing shipping efficiency. This will enable easier access to efficient container handling, which means improved turnaround for shipments and potential reductions in freight costs.

• New Investment Unlocks Industrialisation-  The 962 acres of port land valued at ₹7,565 crore is allocated, with an expected investment inflow of ₹68,780 crore. This itself presents opportunities for the MSMEs to infix into port-led industrial clusters. They can serve as logistics parks, warehousing hubs, or manufacturing units linked to maritime trade, thus providing MSMEs with strategic locational advantages.

• PPP fostering MSME Participation- The increase in Public-Private- Partnership investments from ₹1,329 crore in FY 2022-23 to ₹3,986 crore in FY 2024-25 also indicates growing private sector involvement, opening the door for MSMEs to become service providers, subcontractors, or suppliers in port infrastructure projects, logistics, and supply chain services.

Addressing Challenges with Targeted Support

Though the port infrastructure has improved, the Indian MSMEs face notable challenges. Global disruptions raise freight costs and delivery uncertainties, leaving MSMEs with tight margins. The tech gap can also be a barrier for small players with limited resources or digital maturity. 

Port-led industrialisation requires high capital and supportive financing and leasing policies to help small businesses grow hence their limitation would be a hindrance.

In order to help MSMEs in leveraging India's port-led growth, we need targeted policies. These are freight subsidies used to counteract international cost fluctuations, boost digital and financial literacy and ease access to PPP projects through MSME-friendly tendering processes.

WAY FORWARD

India's Major Ports have made new milestones in FY 2024-25, giving MSMEs a crucial opportunity to integrate in the global trade. However, to make the most of it, MSMEs must adapt to evolving technological, financial, and logistical requirements. Unhindered policy support must be provided to ensure that the small-scale industries, as well as large ones, contribute to the growth and success of the maritime sector.