“Eastern India and the Northeast need to display their potential as India is progressing towards Viksit Bharat.” What Prime Minister Narendra Modi said recently at the Advantage Assam 2.0 Investment and Infrastructure Summit 2025 in Guwahati resonates strongly with the aspirations of the people of this region. The investment commitments secured by Assam (Rs 5.18 lakh crore), Odisha (Rs 16.73 lakh crore) and West Bengal (Rs 4.4 lakh crore) at their respective business summits underline a critical imperative - logistics and transport infrastructure development and upgradation must be a top priority to boost investors’ confidence and position the region strongly in the journey towards Viksit Bharat.
Ports sans deep draft – The missing link
A state’s industry-friendliness is best measured by the strength of its port and shipping infrastructure. Eastern India faces a persistent disadvantage due to inadequate port facilities and high logistics costs. Large vessels cannot berth and sail out from the Kolkata Port, as it is a low draft riverine port. Instead, cargo must be transported via feeder vessels from ships anchored at the sea mouth—a costly and inefficient process.
Haldia Port, on the other hand, continues to act mainly as a feeder port to Visakhapatnam Port and Paradip Port, as bigger vessels prefer to berth at those ports. In fact, Kolkata and Haldia ports witnessed an 8.7% decrease in combined cargo volumes in the first half of FY24 as a result of diversion of coking coal cargo from these low draft ports to the neighbouring deep draft Paradip and Dhamra ports.
In addition, businesses in Eastern India often need to transport goods over 2,000 km to Mumbai by road or rail to access global markets, significantly inflating logistics costs and eroding cost competitiveness. For MSMEs, in particular, high logistics expenses and squeezed margins pose a significant barrier to growth. Elevated logistics costs adversely impact the margins of other crucial components of the supply chain such as warehousing services, container freight stations, transporters, etc. The logistics ecosystem in Eastern India needs to evolve as ex-im trade in this region aims to achieve economies of scale.
Deep-draft sea port – The game changer
Therefore, building a deep-draft sea port is the need of the hour so that West Bengal and its adjacent states can achieve self-reliance in maritime transport as well as enhance global market access. Needless to say, a large-scale port infrastructure development project requires a well-structured public-private partnership (PPP) model and seamless coordination among various government stakeholders. The proposed development of Vadhvan deep-sea port in Maharashtra is an excellent model to study and adapt to the Eastern region’s unique requirements. A joint feasibility study by the central and state governments could serve as a starting point to set the ball rolling.
Beyond ports: The need for stronger road connectivity
Port infrastructure alone cannot resolve the logistics bottleneck. Seamless connectivity through robust road networks is equally important. The Eastern Dedicated Freight Corridor terminates at Dankuni and there is a pressing need to improve road linkages to key industrial and consumption hubs in Kolkata and West Bengal. Traffic congestion and road infrastructure gaps must be addressed urgently to ensure smooth cargo movement. In 2023, the West Bengal government had announced plans to attract Rs 5,000 crore in logistics investments over three years, aiming to enhance infrastructure efficiency. Additionally, national initiatives such as PM Gati Shakti for multimodal connectivity development and Sagarmala for port infrastructure development are gaining pace. Therefore, greater synergy between the centre and state governments is required to accelerate the progress.
Empowering the Northeast as a trade hub
The Northeast contributes 2.9% to India’s GDP, and its economic potential remains largely untapped. With its strategic location—bordering China, Bhutan, Bangladesh, Myanmar and Nepal—the region presents significant opportunities for international trade. So, shipping and transport infrastructure development in Eastern India needs to be prioritised to boost ease of doing business and logistics performance so that the region can attract investments and industries.
A robust port + road infrastructure = Path to progress
Eastern India stands at a crucial juncture and a comprehensive as well as strategic infrastructure development can unlock immense economic potential. So, the focus needs to be on strengthening port infrastructure and improving road connectivity so that the region can emerge as a booming trade and industrial hub. With the right policy interventions and collaborative efforts, Eastern India and Northeast India can become the key drivers of the Viksit Bharat goal.