By Vansh Aggarwal

Introduction:

The Sagarmala Programme, launched by the Government of India in 2015, is a comprehensive initiative designed to harness the country’s extensive maritime resources for economic development. With a coastline spanning 7,517 kilometers and 14,500 kilometers of potentially navigable waterways, India is strategically positioned along key international maritime trade routes. Sagarmala aims to capitalise on these advantages through port-led development, focusing on four primary objectives: port modernisation, port connectivity enhancement, port-led industrialisation, and coastal community development. By enhancing port infrastructure, improving connectivity, and promoting coastal community development, Sagarmala seeks to reduce logistics costs and boost the nation’s economic competitiveness. This article delves into the concept, history, and current status of the Sagarmala Project, analysing its significance in India’s infrastructure, geopolitics, and related fields.

Concept and Objectives:

A core component of Sagarmala is the modernisation of existing ports and the development of new ones to meet future demands. This involves upgrading port infrastructure, enhancing operational efficiency, and increasing capacity to handle larger volumes of cargo. As of 2023, under the Sagarmala Programme, 234 projects have been identified for port modernization, with 94 projects completed, aiming to enhance port capacity and efficiency. Sagarmala focuses on enhancing road, rail, and inland waterway linkages to ensure efficient transportation networks. This includes the development of 279 connectivity projects, with 83 projects completed, to integrate ports with domestic production and consumption centres, thereby reducing logistics costs and transit times. To promote manufacturing and create employment opportunities in coastal regions, Sagarmala emphasises the establishment of Coastal Economic Zones (CEZs) and industrial clusters near ports. These zones are designed to attract investments in port-based industries, leveraging proximity to ports for cost-effective logistics.

As of 2023, 14 projects have been identified under port-led industrialization, focusing on reducing logistics costs by locating industries at the ports. Empowering coastal communities is a vital aspect of the Sagarmala Programme. As of 2023, 81 projects have been identified under coastal community development, focusing on various critical aspects of the maritime sector, including skill development of the coastal community. By focusing on these areas, Sagarmala aims to reduce logistics costs for both domestic and export-import (EXIM) cargo, thereby improving the efficiency of the economy and increasing the competitiveness of Indian exports. The programme’s holistic approach not only seeks to modernise infrastructure but also to integrate various modes of transport and promote sustainable industrial growth. Through strategic planning and implementation, Sagarmala endeavours to position India as a significant player in the global maritime sector, driving economic prosperity and development across the nation’s coastal and hinterland regions.

Current Status:

This programme was conceived by the Union Cabinet in March 2015, to address the challenges of high logistics costs and underutilised coastal assets by establishing a comprehensive framework for maritime infrastructure enhancement. As of January 2025, the Sagarmala Programme has identified a total of 839 projects, with an estimated investment of approximately ₹5.5 lakh crore. Among these, 241 projects worth ₹2.3 lakh crore have been completed, 234 projects valued at ₹2.5 lakh crore are currently under implementation, and 364 projects worth ₹70,000 crore are in various stages of development. These initiatives encompass areas such as port modernisation, connectivity enhancement, port-led industrialisation, coastal community development, and the promotion of coastal shipping and inland waterways. Notably, projects at Honavar in Karnataka, Chhara in Gujarat, and Kakinada SEZ in Andhra Pradesh are currently under implementation. The Sagarmala Programme’s comprehensive approach aims to reduce logistics costs for both domestic and international trade by leveraging coastal and waterway transportation.

Significance in Indian Infrastructure:

One of the key components of the Sagarmala Programme is port modernisation and capacity expansion. As trade volumes increase, India’s ports must be equipped to handle growing cargo traffic efficiently. As of January 2025, multiple port modernisation projects have been undertaken, with significant progress in mechanisation and deepening of ports to accommodate larger vessels. According to the Ministry of Ports, Shipping and Waterways, modernisation efforts have already increased the handling capacity of Indian ports from 871 million metric tonnes (MMT) in 2015 to over 1,500 MMT in 2023. The Sagarmala Programme supports the coastal surveillance network, integrating Automatic Identification Systems (AIS), radar stations, and vessel traffic management systems to improve maritime domain awareness.

Efficient logistics depend on seamless connectivity between ports and production centers. The Sagarmala Programme prioritizes the development of road, rail, and inland waterway linkages to facilitate faster movement of goods. Improved connectivity reduces congestion at ports and minimizes transportation costs and transit time. The programme has identified connectivity enhancement projects worth ₹1.4 lakh crore, including dedicated freight corridors, multimodal logistics parks, and highway expansions. With over 14,500 km of navigable waterways, India is also focusing on inland water transport as a cost-effective and sustainable alternative to road and rail logistics. By promoting coastal shipping and inland waterways, the Sagarmala Programme aims to reduce logistics costs and environmental impact. Coastal shipping is significantly cheaper than road and rail transport, with fuel consumption per ton-kilometer being almost 30% lower than that of trucking. This shift is expected to reduce carbon emissions and alleviate road congestion.

Countering China’s ‘String of Pearls:’

China’s ‘String of Pearls’ strategy involves the development of commercial and military ports along crucial maritime routes from China to the Middle East and Africa. This network of ports, including facilities in Gwadar (Pakistan), Hambantota (Sri Lanka), Kyaukpyu (Myanmar), and Djibouti, enables China to project power in the Indian Ocean Region (IOR) and secure its sea lines of communication. Given the strategic significance of the Indian Ocean for global trade and energy security, China’s expanding influence poses a challenge to India’s maritime dominance. In response, India has formulated the ‘Necklace of Diamonds’ strategy, aimed at countering China’s influence by developing strategic partnerships, strengthening port infrastructure, and enhancing maritime security.

The Sagarmala Programme is a crucial component of India’s ‘Necklace of Diamonds’ strategy, aimed at countering China’s ‘String of Pearls’ through port-led development and enhanced regional connectivity. A significant aspect of this approach is the development of strategic ports in key locations to challenge China’s influence. India’s investment in Chabahar Port (Iran) provides a vital trade route bypassing Pakistan, countering China’s presence in Gwadar Port under the China-Pakistan Economic Corridor (CPEC). Similarly, the Sittwe Port (Myanmar) under the Kaladan Multi-Modal Transit Transport Project strengthens India’s maritime footprint as an alternative to China’s Kyaukpyu Port, a major hub under the Belt and Road Initiative (BRI). Additionally, India’s collaboration with Indonesia on Sabang Port, near the Malacca Strait, helps secure a crucial chokepoint for Chinese energy imports, reinforcing India’s strategic positioning in the Indo-Pacific.

Beyond port development, India has bolstered regional maritime alliances to counterbalance China’s expanding naval presence. The Quad Alliance (India, Japan, the US, and Australia) plays a pivotal role in maintaining a free and open Indo-Pacific, limiting China’s military assertiveness. Additionally, India’s cooperation with Japan through the Asia-Africa Growth Corridor (AAGC) promotes alternative connectivity projects that rival China’s BRI. France has also emerged as a key partner, granting India access to its naval bases in the Indian Ocean, such as Réunion Island, enabling a stronger security presence in Africa. These partnerships enhance India’s ability to project power and secure vital sea lanes, ensuring a balanced maritime order in the region.

To further safeguard its maritime interests, India has expanded maritime domain awareness and security measures under Sagarmala. The Coastal Radar Network, in collaboration with Sri Lanka, the Maldives, and Seychelles, strengthens surveillance of Chinese naval activities. Additionally, India’s Act East Policy has deepened naval engagements with ASEAN nations like Vietnam and the Philippines, supporting them in countering China’s territorial claims in the South China Sea. Complementing this, India’s ‘Fish Hook Strategy’ enhances surveillance and defense agreements with island nations such as Seychelles, Mauritius, and Madagascar, while the Andaman and Nicobar Islands serve as a strategic outpost near the Malacca Strait. These initiatives collectively reinforce the ‘Diamond Necklace’ strategy, strengthening India’s economic and security partnerships across Africa, the Middle East, and Southeast Asia, ensuring alternative trade routes and reducing dependence on China-controlled maritime corridors.

Relevance and Recommendations for Policy Enhancement:

The Sagarmala Programme continues to play a crucial role in strengthening India’s maritime infrastructure and logistics efficiency. A key challenge for large-scale port development is ensuring environmental sustainability. Expanding port infrastructure can lead to ecological degradation, affecting marine biodiversity, coastal habitats, and local livelihoods. To mitigate these risks, Sagarmala should integrate green port initiatives, such as using solar and wind energy, deploying electric vehicles for cargo handling, and promoting carbon-neutral logistics solutions. Additionally, the government should enforce stricter environmental impact assessments (EIA) to ensure that port-led projects do not irreversibly damage coastal ecosystems. Sustainable dredging practices and waste management systems for port operations should also be a priority to minimize environmental damage. Port-led development must not come at the cost of coastal communities and local livelihoods. Many Sagarmala projects have faced opposition due to concerns about displacement, loss of fishing zones, and land acquisition disputes. To ensure inclusive development, the programme should establish structured consultations with fishermen, small traders, and residents before implementing new projects. Skill development programs tailored for coastal employment should be introduced, ensuring that those affected by industrialization can find alternative means of livelihood. Additionally, fair compensation and proper rehabilitation for displaced families should be mandated to prevent socio-economic distress.

Given the scale and investment required for the successful implementation of Sagarmala, private sector participation through Public-Private Partnerships (PPPs) is essential. Encouraging greater private investment will help modernize port infrastructure and reduce the financial burden on the government. The policy should focus on simplifying regulations for private investors, providing long-term tax incentives, and ensuring faster clearance processes for foreign direct investment (FDI) in ports and logistics. Moreover, encouraging private companies to develop multimodal logistics parks can significantly improve last-mile connectivity between ports and industrial hubs. Additionally, adopting blockchain-based tracking systems can improve supply chain transparency and security. Internet of Things (IoT) sensors should be installed for real-time cargo monitoring and berth occupancy tracking, ensuring optimal port operations. To further boost trade efficiency, expanding digital trade facilitation platforms will streamline customs clearance and export-import documentation. Establishing bilateral maritime agreements with advanced port nations like Singapore, the Netherlands, and Japan will provide India access to modern port management techniques and smart logistics solutions. Additionally, India should leverage initiatives like the Indo-Pacific Economic Framework (IPEF) to enhance regional trade connectivity and maritime security cooperation. Strengthening partnerships with the European Union and the United States can also facilitate technology sharing in green energy solutions and smart port development.

Conclusion:

The Sagarmala Programme stands as a cornerstone of India’s maritime development strategy, integrating infrastructure expansion with economic and strategic imperatives. Modernising ports, enhancing connectivity, and fostering coastal industrialisation, not only reduces logistics costs but also strengthens India’s position in global trade. Furthermore, its role in countering China’s maritime influence highlights its geopolitical significance. However, to maximise its impact, a balanced approach is necessary—one that ensures environmental sustainability, safeguards local livelihoods, and fosters technological advancements. Through adaptive policies and international collaborations, Sagarmala can evolve into a model of sustainable and inclusive maritime growth, reinforcing India’s vision of becoming a global trade and logistics hub. As the great philosopher Confucius once said, “The man who moves a mountain begins by carrying away small stones.” Similarly, India’s journey towards maritime excellence through Sagarmala is a step-by-step process, laying the foundation for a stronger and more resilient future.The Sagarmala Programme, launched by the Government of India in 2015, is a comprehensive initiative designed to harness the country’s extensive maritime resources for economic development. With a coastline spanning 7,517 kilometers and 14,500 kilometers of potentially navigable waterways, India is strategically positioned along key international maritime trade routes. Sagarmala aims to capitalise on these advantages through port-led development, focusing on four primary objectives: port modernisation, port connectivity enhancement, port-led industrialisation, and coastal community development. By enhancing port infrastructure, improving connectivity, and promoting coastal community development, Sagarmala seeks to reduce logistics costs and boost the nation’s economic competitiveness. This article delves into the concept, history, and current status of the Sagarmala Project, analyzing its significance in India’s infrastructure, geopolitics, and related fields.

Author’s Bio:

Vansh Vijay Aggarwal is a B.A. LL.B. student at Jindal Global Law School and a columnist at CNES.

Image Source: Ministry of Shipping sets Sagarmala Programme in motion by empaneling law firms – Sarkaritel.com