US-China trade tensions to drive growth in Indian trade, says Karan Adani

By Admin

03 May, 2025

In a significant development that reflects the shifting dynamics of global trade, Karan Adani, Managing Director of Adani Ports and Special Economic Zone (APSEZ), stated that India is poised to benefit immensely from the ongoing US-China trade war. Speaking at the inauguration of the Vizhinjam Transhipment Port in Kerala, Adani emphasized that India is currently experiencing double-digit trade growth, with increasing export volumes to the United States, putting the country in a strategic “sweet spot.”

Manufacturing Shift Fuels Export Surge

According to Karan Adani, the US-China trade tensions have catalyzed a notable shift in global manufacturing. “From a trade perspective, we are seeing that a lot of manufacturing is moving into India, and the export boxes are increasing from India to the US,” he said. This shift is translating into significant growth for Indian ports, particularly those managed by APSEZ, which is witnessing more than double-digit increases in trade volumes.

Vizhinjam Port: A Game Changer

The inauguration of the Vizhinjam International Deepwater Multipurpose Seaport, formally opened by Prime Minister Narendra Modi, is expected to play a key role in India’s maritime ambitions. Strategically located near the southern tip of India and just 20 km from a major east-west shipping corridor, the port began commercial operations in December last year. Karan Adani remarked, “Give us a year, and you will see that all Indian cargo will get trans-shipped here rather than predominantly internationally.”

With a planned capacity of 5 million TEUs by 2028, Vizhinjam Port is set to become a crucial transhipment hub, reducing India's dependency on foreign ports for cargo transhipment and boosting national logistics capabilities.

APSEZ's Growth Strategy

Looking ahead, Karan Adani outlined ambitious expansion plans for APSEZ. The company is pursuing both organic and inorganic growth, particularly targeting opportunities in Southeast Asia and East Africa. For FY 2025–26, APSEZ has committed a capital expenditure of ₹12,000 crore, half of which will go toward capacity enhancements at its existing ports, including Mundra, Colombo, and Dharma. The remainder will support expansion in logistics, marine services, technology, and decarbonisation efforts.

Interestingly, Adani highlighted that APSEZ is currently “making more money than it can utilise,” a challenge the new Vizhinjam port is well-positioned to address by unlocking additional capacity and revenue streams.

India’s Emerging Trade Power

With global trade routes realigning and manufacturing centers shifting, India’s ports are emerging as critical enablers of economic growth. As the US and China continue their economic standoff, India's proactive investments in infrastructure, like the Vizhinjam Port, may well turn these geopolitical frictions into a long-term opportunity for sustainable trade development.

As Karan Adani aptly put it, the country is not just benefitting from global trade tensions — it is redefining its role as a central node in the global logistics and manufacturing landscape.