India is on the cusp of becoming the world's third-largest economy, yet its maritime sector lags behind global leaders. With a mere 0.07% share in global shipbuilding and 1.2% in ship ownership, India relies on foreign vessels for 95% of its trade. This dependency leads to substantial forex outflows, strategic vulnerabilities, and missed economic opportunities. Addressing these challenges is crucial to align India’s maritime sector with its economic and strategic aspirations.
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Current Status of India’s Maritime Sector
Global Rank: 16th largest maritime country.
Trade Dependency: Handles 95% of India’s trade by volume and 70% by value.
Ship Recycling: 3rd largest globally, with a 30% market share; Alang is the world’s largest ship-breaking facility.
Credits: Science Direct
Why Investment in Maritime Infrastructure is Crucial?
Economic Security & Trade Resilience:
Trade Dependency: 95% of India’s international cargo depends on foreign ships.
Freight Costs: Surged to $75 billion (2022-23), projected to exceed $100 billion soon.
Geopolitical Vulnerabilities: Ukraine war and Middle East tensions underscore risks.
Strategic Positioning in Indo-Pacific:
China's Dominance: 46.6% global shipbuilding share; "String of Pearls" strategy.
India’s Initiatives: IMEC (2023) and SAGAR vision enhance strategic relevance.
Employment Generation & Skill Development:
10% of global maritime workforce are Indian seafarers.
Sagarmala program generates significant employment opportunities.
Environmental Sustainability & Energy Security:
COP28 Commitments: Aligns with net-zero emissions by 2050.
Green Initiatives: Harit Sagar, zero-emission vessels, and electric water taxis.
Domestic Manufacturing & Self-Reliance:
Indigenous achievements: INS Vikrant and PLI schemes for marine products.
Supports Atma Nirbhar Bharat and global manufacturing hub ambitions.
Regional Connectivity & Trade Integration:
Key projects: Sittwe Port, Sabang Port, and agreements with Sri Lanka and Maldives.
Major Challenges in Maritime Infrastructure
Financing & Policy Barriers:
Ships excluded from harmonized infrastructure list and SARFAESI Act.
High financing costs and 0.06% global shipbuilding share due to raw material import dependency.
Port Infrastructure Gaps:
Average turnaround time: 2.1 days vs. 0.6 in Singapore.
Nascent adoption of blockchain, IoT, and AI in ports.
Regulatory & Policy Coordination:
Delayed approvals (2-3 years for port projects).
Lack of single-window clearance.
Competition:
China dominates with economies of scale; Indian shipyards at 60-70% capacity.
Coastal Shipping & Hinterland Connectivity:
Coastal shipping accounts for only 6% of domestic freight.
Only 30% of major ports have direct rail connections.
Government Initiatives for Maritime Growth
Maritime India Vision 2030:
Blueprint for comprehensive maritime sector growth with over 150 initiatives.
Sagar Mala Program (2015):some text
$123 billion investment in 415 projects across:some text
Port Modernization
Port Connectivity
Port-Linked Industrialization
Coastal Community Development
Targets: $2.7 billion annual revenue and 2 million jobs by 2030.
Measures to Accelerate Maritime Infrastructure
Integrated Port Development:
Establish a National Port Grid Authority and hub-and-spoke model.
Link ports with industrial corridors and SEZs.
Technology Modernization:
Smart Port Infrastructure Management Systems (SPIMS).
Blockchain-based port community systems and IoT-enabled tracking.
Multimodal Connectivity:
Complete Dedicated Freight Corridors linking ports to industrial hubs.
Coastal economic zones with logistics parks and standardized connectivity models.
Green Port Initiatives:
Solar and wind integration; shore-to-ship power systems.
Automated environmental monitoring and green corridors for cargo movement.
Skill Development:
Maritime Skill Development Centers and exchange programs.
Innovation labs at IITs and maritime universities.
Private Sector Participation:
Hybrid annuity models and infrastructure investment trusts (InvITs).
Special-purpose vehicles with state and private sector participation.
Coastal Community Integration:
Fishing harbors, coastal tourism, and skill programs for coastal communities.
Port Efficiency:
Benchmarking systems for performance monitoring.
Specialised cargo handling facilities and dedicated coastal berths.
Conclusion
Developing a robust maritime infrastructure is essential for economic resilience, trade control, and strategic security. It aligns with SDG 9 (Industry, Innovation, and Infrastructure) and SDG 13 (Climate Action) while supporting India's ambitions of becoming a global economic powerhouse. Through targeted reforms and investments, India can overcome vulnerabilities, enhance environmental sustainability, and secure its maritime future.
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