Indian government has allowed 100% FDI under the automatic route for projects related to the construction and maintenance of ports and harbors.
Special Economic Zones (SEZs) are being developed in close proximity to several ports. These comprise of coal-based power plants, steel plants and oil refineries.
2422 Million Metric tons of cargo handling capacity will be required in Indian ports by 2021-22. There is an increase in trade activities and private participation in port infrastructure development in India.
Rising cargo traffic and an increase in the number of non-major ports is another good reason to invest.
Exemptions under the Income Tax Act for Infrastructure Development, under Section 80IA is provoded.