India’s Cargo Volumes Set to Surge 6-8% This Fiscal Year Amid Robust Infrastructure Investments

Cargo volumes in India are anticipated to rise by 6–8% in the current fiscal year, driven by robust growth in the container and coal segments, according to a report released on Wednesday. This growth is attributed to increased government capital outlay across road, port, and airport infrastructure.

Credit agency ICRA predicts that transportation infrastructure projects will see increased spending in the coming years. This includes significant investments in roads, ports, and airports, supported by substantial government funding, rising capital outlays, and an extensive project pipeline. Under the ‘Maritime India Vision 2030,’ the government plans a significant increase in capex to enhance port capacity and infrastructure over the next decade.

However, this expansion could lead to supply-demand mismatches in certain areas, causing heightened competition and pricing pressure for ports, the report notes. ICRA expects the Indian government to continue prioritizing road sector investments with increased capital allocations.

The Ministry of Roads, Transport, and Highways (MoRTH) has seen its budget allocation grow more than eightfold over the past decade to Rs 2.7 lakh crore in fiscal 2025, representing a 22% compound annual growth rate.

“India’s road construction is projected to grow by 5-8% to 12,500 km-13,000 km in fiscal 2025, following a strong 20% expansion in fiscal 2024. This growth will be driven by a healthy project pipeline, increased government capital outlay, and a heightened focus on project completion by MoRTH,” said Girishkumar Kadam, ICRA’s Senior Vice President and Group Head, Corporate Ratings.

ICRA also expects steady investment in airport infrastructure, with around Rs 55,000 crore to Rs 60,000 crore of committed capital over the next 3–4 years. This investment will be directed towards new greenfield airports, brownfield developments, and airport expansions under the Airports Authority of India (AAI).

Overall passenger traffic at airports is projected to grow healthily by 8–11%, reaching approximately 407–418 million passengers in fiscal 2025, up from fiscal 2024, the report states.

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