India's Container Volumes at Risk Amid Global Slowdown: Jefferies

Jefferies warns that India's port sector, especially container volumes, faces risks from a global growth slowdown and US tariffs.

- TBG NETWORK

According to a report by Jefferies, India's port sector, especially the container volume, is likely to be significantly impacted by the US tariff and the potential global growth slowdown.

"Container volumes at higher risk of potential global growth slowdown," said the report.

Container has a higher correlation to global GDP growth, while volumes have a higher correlation to domestic GDP growth.

The report, however, also noted that in India the sector will see an investment of over USD 30 billion by FY30 as compared to less than USD 10 billion in the past decade.

It says that volume growth will be driven by capacity addition and terminal privatisation at major ports.