India’s Maritime Sector

Syllabus: GS3/Economy; Infrastructure

Context

• As India ascends the global stage, its maritime sector emerges as a linchpin for commerce, connectivity, and international cooperation.

About the India’s Maritime Sector

• India’s maritime legacy is as vast and dynamic as its 7,500-kilometer coastline, which anchors 12 major ports and over 200 minor ones, which collectively support its burgeoning economy.
• It handles approximately 95% of the country’s trade by volume and 70% by value.
• In 2023, the nation contributed 16% of global growth, and according to some estimates, it is on course to become the third-largest economy within the next three years.

Strategic Importance

• India’s strategic location along major global shipping lanes underscores its importance in international trade. 
• Most cargo ships traveling between East Asia and destinations like America, Europe, and Africa pass through Indian waters.
• This not only highlights India’s role as a key trading hub but also its potential to influence global maritime governance.

Key Initiatives and Developments

• Sagarmanthan 2024: It was organized by the Ministry of Ports, Shipping, and Waterways (MoPSW) in collaboration with the Observer Research Foundation (ORF), and is South Asia’s largest maritime thought leadership forum.
  • It focuses on critical themes such as the blue economy, global supply chains, maritime logistics, and sustainable growth.

• Maritime India Vision 2030: It outlines 150 initiatives aimed at propelling India to global maritime leadership.
  • It encompasses the development of ports, shipping, and waterways, with a strong emphasis on sustainability and innovation.
  • Key initiatives include Green and Smart Ports; Fleet Expansion; and Infrastructure Development.
• Panch Karma Sankalp: It includes five major announcements focusing on green shipping and digitization in India.
  • MoPSW aims to provide 30% financial support for promoting Green Shipping that includes Green Tug Transition Programme, and Green Hydrogen Hubs etc
• Sagarmala Programme: It is aimed at driving port-led development across India. It supports various port infrastructure projects, coastal development, and connectivity enhancements.
  • Financial assistance is provided to State/UT Governments for projects like coastal berths, road and rail connectivity, fish harbours, skill development, cruise terminals, and Ro-Pax ferry services.

Challenges and Opportunities Ahead of India’s Maritime Sector

• Infrastructure and Modernization: India aims to become one of the top five maritime nations by 2047, necessitating substantial investments in infrastructure.
  • The current cargo handling capacity of 1,600 million metric tonnes needs to expand to 10,000 million metric tonnes.
  • It requires modernizing ports, enhancing cargo handling systems, and developing green ports and shipping.
• Regulatory and Policy Framework: The upcoming Coastal Shipping Bill and Merchant Shipping Bill are expected to boost coastal shipping and ease business operations.
  • However, effective implementation and regulatory clarity are crucial to ensure these legislations achieve their intended impact.
• Security and Strategic Challenges: The commissioning of indigenous nuclear-powered submarines and the development of anti-piracy measures highlight India’s focus on maritime stability.
  • However, maintaining and upgrading these capabilities will be an ongoing challenge.
• Economic and Global Competition: To become a global leader, India must improve its logistics performance, reduce container dwell time, and enhance turnaround times.
  • Strategic partnerships and international cooperation will be key to achieving these goals.
• Environmental Sustainability: The maritime sector must balance growth with environmental sustainability.
  • Initiatives like green ports and green shipping are essential, but they require significant investment and technological advancements.
  • Indian Coast Guard plays a vital role in marine environment protection and oil spill response.
• Human Resources and Skill Development: It includes training in advanced technologies and ensuring safety standards.
  • Collaboration with international partners can help in skill development and knowledge transfer.

Conclusion 

• India’s maritime sector is set for substantial growth, driven by strategic initiatives and government schemes. 
• Programs such as the Sagarmala Programme, Maritime India Vision 2030, and the Green Tug Transition Program are modernizing infrastructure, promoting green shipping, and improving port connectivity. 
• These efforts, along with the insights from Sagarmanthan, position India’s maritime sector for a sustainable and innovative future, establishing its role as a key player in the global maritime domain.

Source: PIB