Gujarat has broken new ground with different forms of privatization, ranging from private provision of port services to completely private ownership of new ports. The process started in the 1980s and gathered momentum rapidly after the central government in New Delhi enacted major economic reforms in the early 1990s. Gujarat has taken advantage of a constitutional loophole to convert its minor ports into some of the biggest ports in the country, vastly improved the availability and efficiency of port infrastructure, and facilitated the development of industrial centers that otherwise would not have existed.
Gujarat’s port liberalization, along with its status as one of the economically freest states in India, should serve as a model for the rest of India and other developing countries, which can also benefit from the dynamic gains of port privatization.
