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Cargo volumes in India are expected to grow 6-8 per cent in the current fiscal year, driven by healthy growth in the container and coal segments, according to a report released on Wednesday.

 

The increase comes amid heightened government capital outlay across roads, ports, and airport infrastructure.

 

Credit agency ICRA forecasts a significant rise in spending on transportation infrastructure projects, including roads, ports, and airports, buoyed by solid government support, rising capital outlays, and a large pipeline of projects.

 

As part of the ‘Maritime India Vision 2030’, the government has planned substantial capital expenditure to enhance port capacity and infrastructure over the next decade.

 

This expansion could lead to supply-demand mismatches in certain areas, resulting in increased competition and pricing pressure for ports, the report noted.

 

ICRA anticipates that the Indian government will continue to prioritise road sector investments, as evidenced by the Ministry of Roads, Transport and Highways’ (MoRTH) budgetary allocation, which has surged more than eightfold over the past decade to Rs 2.7 lakh crore in fiscal 2025. This reflects a compound annual growth rate of 22 per cent.

 

“India’s road construction is likely to grow 5-8 per cent to 12,500 km-13,000 km in fiscal 2025, following a robust expansion of around 20 per cent in fiscal 2024,” said Girishkumar Kadam, ICRA’s Senior Vice President and Group Head, Corporate Ratings. "This execution pace will be supported by a healthy pipeline of projects, increased government capital outlay, and a greater focus on project completion by MoRTH."

 

Investments in airport infrastructure are also expected to remain strong, with around Rs 55,000 crore to Rs 60,000 crore of committed capital expenditure over the next three to four years.

 

This will be directed towards new greenfield airports, brownfield developments, and expansions under the Airports Authority of India (AAI).

 

Passenger traffic at airports is projected to grow at a healthy rate of 8-11 per cent, reaching approximately 407 million to 418 million passengers in fiscal 2025, up from fiscal 2024, according to the report.