India's Maritime Sector: Investment and Strategic Developments
India’s maritime sector is projected to secure approximately ₹8 trillion in investments and generate around 15 million jobs by 2047, according to Union Petroleum and Natural Gas Minister Hardeep Singh Puri.
Government Initiatives
Minister Puri outlined several strategic measures to enhance the maritime sector:
- Aggregating public sector undertaking (PSU) cargo demand to provide long-term charters to Indian carriers.
- Advancing the Ship Owning and Leasing (SOL) model.
- Establishing a maritime development fund to facilitate affordable vessel financing.
- Implementing Shipbuilding Financial Assistance Policy 2.0 with a focus on liquefied natural gas (LNG), ethane, and product tankers.
Domestic Fleet Expansion
Puri emphasized the plan to develop India's own fleet of oil tankers to mitigate high freight costs paid to foreign operators. Currently, only about 20% of India's trade cargo is carried on India-flagged or India-owned vessels, marking a significant opportunity for growth.
Significance of the Shipping Industry
The shipping industry is crucial for India’s energy security. Over the past five years, state-run oil marketing companies (OMCs) have spent $8 billion on chartering ships, a sum that could otherwise have funded a new fleet of Indian-owned tankers.
The shipbuilding industry necessitates long-term planning and steady orders to maintain infrastructure and skilled workforce.
Sectoral Growth and Achievements
Over the past eleven years, India’s port capacity has expanded from 872 million metric tons per annum in 2014 to 1,681 million metric tons, with cargo volumes increasing from 581 million tons to about 855 million tons.
The Sagarmala Programme has mobilized projects worth over ₹5.5 trillion to modernize ports and enhance coastal connectivity.
Global Trade and Economic Growth
India actively influences global trade routes through initiatives like the India-Middle East-Europe Economic Corridor and the International North-South Transport Corridor, linking Indian ports with Europe, Central Asia, and Africa.
The oil and gas sector represents 28% of India’s total trade by volume, highlighting its pivotal role in economic growth.