Critical analysis on Indian container traffic and its impact on economic development

Abstract

The increased trade flexibility afforded by containerized cargo has dramatically changed worldwide trade and economic interdependence. The study assesses the importance of container traffic in economic growth, specifically in the areas of GDP growth, job creation, industrial activity, and export/import efficiency. By analyzing data from the major container ports and their hinterlands, the study reviewed the trends and relationships between increases in container volume (throughput) with traditional macroeconomic indicators. For the analysis, the study utilized both quantitative assessments (port throughput data and economic metrics) and qualitative assessments (data on infrastructure and policies). Important findings included the contribution of ports with large transaction volumes to the nation or region in terms of enhanced connectivity, reduced logistics costs, and attracting foreign investment. Significant challenges remain for ports including capacity-related issues, environment/fossil fuel dependency, and the need for progress in the areas of digitization and green technologies. The research concludes with recommendations for future policy reform and strategic public or private investment in port infrastructure to benefit from increased port leverage of container volume for inclusive economic growth.