Context: The Interim Budget presented by Finance Minister underscores the importance of promoting an environment-friendly ‘blue economy’ for sustainable development.

Understanding Blue Economy

• Definition: The blue economy encompasses economic activities related to oceans, seas, and coastal regions, with a strong emphasis on sustainability.

• Global Perspective: The European Commission defines it as a wide range of established and emerging sectors linked to ocean resources, while the World Bank emphasizes the sustainable use of ocean resources for economic growth and livelihoods.

Blue economy 1.0 vs 2.0

Significance for India

• India’s Coastal Abundance: With its extensive coastline, diverse marine resources, and tourism potential, India stands to benefit significantly from the blue economy.

• Balancing Growth: The blue economy seeks to achieve economic growth while preserving the health of ocean ecosystems.

• On major sea lines of trade: There are nearly 199 ports, including 12 major ports that handle approximately 1,400 million tons of cargo each year. 

• Large EEZ: India’s Exclusive Economic Zone(EEZ) of over 2 million square kilometers has a bounty of living and non-living resources with significant recoverable resources such as crude oil and natural gas. 

• Livelihood: The coastal economy sustains over 4 million fisherfolk and coastal communities.

• Economic and Trade Potential: The Indian Ocean Region is abundant with resources, particularly in the sectors of fisheries, aquaculture, ocean energy, sea-bed mining and minerals, and provides tremendous economic opportunities to develop marine tourism and shipping activities.

• Natural resources: Polymetallic nodules and polymetallic massive sulfides are the two mineral resources of commercial interest to developers in the Indian Ocean.

Budget Proposals

• Restoration and Adaptation: A scheme focusing on climate-resilient activities, restoration, adaptation measures, and integrated coastal aquaculture and mariculture will be launched.

• Integrated Aquaparks: The budget outlines plans for setting up five integrated aquaparks to boost aquaculture productivity.

• Pradhan Mantri Matsya Sampada Yojana (PMMSY): PMMSY will be intensified to double exports to Rs 1 lakh crore and generate 55 lakh employment opportunities.

India’s Blue Economy Policy

• Blue Economy 2.0: The budget introduces the concept of Blue Economy 2.0, building upon a draft policy framework released in July 2022.

• Policy Framework: The framework encompasses various aspects such as marine resources, coastal planning, tourism, fisheries, aquaculture, trade, technology, infrastructure, and international engagement.

Global Engagement

• G20 Summit: India, as the host of the G20 summit, prioritized blue economy discussions, emphasizing its significance on the global stage.

• Responsibility and Collaboration: India recognizes the importance of responsible artificial intelligence and sustainable ocean governance in the context of the blue economy.

Challenges

Environmental Challenges

• Overexploitation of resources: Unsustainable fishing practices, pollution, and habitat destruction threaten marine biodiversity and ecosystem health.

• Climate change: Rising sea levels, ocean acidification, and extreme weather events disrupt coastal communities and marine ecosystems.

• Pollution: Untreated sewage, industrial waste, and plastic pollution contaminate coastal waters, impacting human health and marine life.

Economic Challenges

• Lack of infrastructure: Inadequate port facilities, cold storage, and transportation networks limit efficient utilization of marine resources.

• Limited investment: Insufficient funding for research, innovation, and development of sustainable technologies hampers growth.

• Skill gap: Lack of skilled professionals in areas like marine engineering, aquaculture, and ocean governance hinders development.

Social Challenges

• Livelihood dependence: Traditional fishing communities face challenges due to resource depletion and competition from large-scale fishing.

• Coastal erosion and displacement: Rising sea levels and extreme weather events displace coastal communities and disrupt livelihoods.

• Equity and access: Equitable distribution of benefits from the Blue Economy remains a concern, particularly for marginalized communities.

Governance Challenges

• Policy and regulation: Ineffective regulations and enforcement hinder sustainable practices and combating illegal activities like illegal fishing.

• Institutional coordination: Lack of coordination between different government agencies responsible for managing marine resources creates hurdles.

Measures

• Sustainable practices: Implementing measures like quotas, closed seasons, and marine protected areas to ensure sustainable resource utilization.

• Technological innovation: Investing in R&D for technologies like aquaculture, renewable ocean energy, and pollution control.

• Skilling and capacity building: Training programs to equip coastal communities with relevant skills for future Blue Economy jobs.

• Community engagement: Engaging local communities in decision-making processes and ensuring equitable distribution of benefits.

• Strengthened governance: Robust policies, effective enforcement, and improved coordination between government agencies.

• International collaboration: Engaging in regional and global initiatives to address shared challenges and promote sustainable ocean management.

Government steps

• Draft policy on India’s Blue Economy, 2022:  Recommended on National Accounting Framework for Blue Economy and Ocean Governance, Coastal Marine Spatial Planning and Tourism Priority, Marine Fisheries, Aquaculture and among others.

• Integrated Coastal Zone Management (ICZM) Program: Aims to balance economic development with environmental protection and conservation in coastal areas.

• Sagarmala Project: Focuses on port modernization, coastal infrastructure development, and maritime connectivity to improve logistics and trade.

• Deep Ocean Mission: Promotes research and exploration of the deep sea for sustainable utilization of resources and scientific advancement.

• Indian Ocean Rim Association (IORA): Collaborates with regional countries on Blue Economy initiatives like sustainable fisheries management and marine pollution control.

• The Interim Budget 2024-25 document refers to blue economy 2.0 and announced the setting up of five integrated aqua parks.

• Two priorities for the Supreme Audit Institutions 20 (SAI20) deliberations during the G20 meet were blue economy and responsible Artificial Intelligence.

Conclusion

• India’s commitment to promoting the blue economy aligns with global efforts for sustainable development.

• The Interim Budget’s proposals aim to harness the potential of India’s coastal resources while preserving the marine ecosystem, fostering economic growth, and creating employment opportunities.

• This strategic shift underscores India’s dedication to responsible and inclusive development.

• With vast maritime interests, the blue economy occupies a vital potential position in India’s economic growth. 

• It could well be the next multiplier of GDP and well-being, provided sustainability and socio-economic welfare are kept center-stage.

• Transitioning from 1.0 to 2.0 requires collaborative efforts from governments, businesses, research institutions, and communities to develop and implement sustainable practices.