The New York Times, often berated by some Indians for negative coverage about India, just published a largely glowing story about its seaport expansion.
The Jawaharlal Nehru Port on India’s west coast is a crucial hub for the country’s growing manufacturing and export industries. The port, located just south of Mumbai, handles a quarter of India’s shipping container traffic, which has increased three times over the past two decades. (The story did not mention the highly efficient privately owned Mundhra port in Gujarat, owned and run by the Adani group).
As multinational companies look to diversify their supply chains away from over-reliance on China, India is positioning itself as an attractive alternative manufacturing base. Major retailers such as Walmart are expanding their operations in India, according to the article
To capitalize on this opportunity, India is pursuing an aggressive campaign to expand and upgrade its port infrastructure. At the Jawaharlal Nehru Port, construction crews are doubling the size of one of the five terminals, adding two new berths. The port authority is also proceeding with plans to build a massive new deepwater port facility at Vadhvan, about 100 miles up the coast. (Gunjan note: When I arranged a meeting in Los Angeles between Gene Seroka, CEO of the Port of Los Angeles and India’s Commerce Minister, we discussed the plans for Vadvan).
This new $ 9 billion Vadhvan port is designed to handle the world’s largest container ships and will eliminate the need for trans-shipment via Singapore, Dubai and Colombo (and sometimes via Shanghai or Hong Kong). Unmesh Sharad Wagh, chairman of the Jawaharlal Nehru Port Authority, told the the New York Times: “The world doesn’t want total dependence on China. Definitely, the best alternative is India. Now, people are shifting their base to India.”
India’s ambitions to grow its manufacturing and export sectors hinge heavily on the success of these major port and transportation infrastructure projects. Completing them in a timely manner will be crucial to positioning India as a viable alternative production base for multinational companies looking to reduce their reliance on China. The country’s ability to capitalize on this opportunity could shape its economic trajectory in the years ahead.
